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The highlights of WIREC 2008 included:• 8,600 attendees• 3 million hits on official event website• Energy, environmental and economic ministers from over 80 countries• Over 130 country pledges to advance renewable energy• 250 speakers on wind, solar, hydro, geothermal, biomass and biofuels• 246 exhibitors• 40 sponsoring companies• 11 international pavilions hosted by governments• Two major receptions attended by 8,000 delegates• 80 Official Side Events• Over 300 media reporters• Multiple product launchesAmerican Council On Renewable EnergyExecutive Summary Report 6

CONFERENCE PROGRAMTrack: A - Room N234 B - Room N242 C - Room N237 D - Room N241 E - Room N243 F - Room N2389:00-12:00 pm Opening Session12:00-2:00 pm Opening Lunch in Exhibit HallWednesday, February 25th2:00-4:00 pm A1-Utilities: B1- Global C1- U.S. D1- U.S. E1- Biomass F1- SustainabilityStrategic Issues in Renewable Energy Renewable Renewable Supply and ClimateRenewable Energy Industry Energy Finance Energy Project Management PolicyFinance4:00-4:30 pm Refreshment Break4:30-6:00 pm A2- Developing a B2- Utilities: C2- National D2- Biomass E2- Advanced F2- Green SchoolsNew R&D Plan for Transmission Security and Power BiofuelsRenewable Energy Defense Production &Technologies Applications Policy (LightDuty Engines)6:00-7:30 pm DREAM Opening Reception in Exhibit Hall, sponsored by the Maryland Energy Administration, Maryland Departmentof Business and Economic Development, and the University of Maryland.Thursday, February 26th8:30-10:00 am A3- PV Technology B3- Wind C3- Utilities: D3- Advanced E3- Biofuels F3- Green CitiesTechnology Planning, Biofuels MarketProcurement & Production & DevelopmentContracts Policy (Heavy DutyEngines)10:30-12:00 pm A4- PV Economics, B4- Wind C4- Geothermal D4- Utilities: E4- Advanced F4- GreenFinance & Policy Economics, and Ocean Energy Storage Conventional CompaniesFinance & Policy Thermal Power Biofuels12:00-2:00 pm Lunch in Exhibit Hall1:00-2:00 pm Special Session: Dan Reicher, Director of Climate Change and Energy Initiatives, Google, Inc. - Room N256• Implementing the Stimulus: What Comes Next• Energy Legislation: 2009 & Beyond• What Google is up to: Technology, Policy, Finance2:00-4:00 pm A5- PV Markets & B5- Wind Markets C5- Hydro & D5- Biomass E5- Utilities: Smart F5- Feed-inSystems & Projects Ocean Power Thermal Energy Grid and TariffsDistributedGeneration4:30-6:00 pm A6- CSP B6- Economic C6- Environmental D6- International E6- Biobased F6- Utilities:Technology & Cost Development & Carbon Finance Markets & Policy Products & Green PowerWorkshop 1 Integrated MarketsBiorefineries6:00-7:30 pm RETECH Happy Hour in Exhibit Hall, sponsored by Covanta EnergyFriday, February 27th Exhibit Hall will be open from 10:00am to 3:00pm8:30-10:00 am A7- CSP Projects B7- Economic C7- Venture D7- China E7- Hydrogen, F7- GreenDevelopment Capital Fuel Cells & BuildingsWorkshop 2Advanced Engines10:30-12:00 pm A8- Carbon/ REC B8- Economic C8- Capital D8- Developing E8- Advanced F8- GreenTrading Development Access: Public and Countries Vehicle (DREAM) JobsWorkshop3 Private Markets Technologies12:00-1:00 pm A9- Utility and B9- Economic C9- Venture D9- International E9- Land-Use F9- GreenPower Gen. Lunch Development Capital Lunch Lunch Lunch (DREAM) JobsLunchLunchAmerican Council On Renewable EnergyExecutive Summary Report 8

EVENT SPONSORSHosted byBadge SponsorGreen SponsorLogo SponsorGala Reception SponsorConference SponsorGold SponsorSilver SponsorAisle Signage SponsorER MO®Bag Insert SponsorBelly BandAd SponsorShow Guide SponsorMedia NotepadsConference BagsCyber CafeMEDIA PARTNERSAmerican Council On Renewable EnergyExecutive Summary Report 75

EXHIBITORS4RF Communications Ltd.A123SystemsAbengoa Solar Inc.ACORE Cyber CafeACORE Renewable Transportation PavilionACORE Supporting Organizations PavilionADAGEAdvantage For AnalystsAECOM EnvironmentAffinity Co., LtdAlliance to Save EnergyAmarillo EDCAmerican Council On Renewable Energy (ACORE)American Solar ElectricAssociation of Energy EngineersAtlantic Canada Opportunities AgencyAuckland UniServices Ltd.Australian Trade CommissionAustrian Trade CommissionBBI InternationalBiofuels BusinessBiomass Thermal Energy CouncilBlue Tower Energy USABroadlands Financial Group, LLCBRUKS Rockwood, Inc.Center for Resource SolutionsCity of Las VegasClean Edge, Inc.Clean Green Energy LLCClimateMaster, Inc.COMPETEConservation Services GroupCooleradoCovanta EnergyDAZ Systems, Inc.Defense Energy Support CenterDivision of Energy and Mineral DevelopmentDuane Morris LLPDuCoolDynGlobalEcoInnovationEmbassy of the Federal Republic of Germany &Germany Trade and InvestenerG MagazineEnergies Direct, LLCEnergy MadEnviro Energy Ltd.EORMEurus Energy America Corp.Evolution MarketsEwing Bemiss & Co.Export-Import Bank of the U. S.GeoPowering the WestGHD, Inc.Global Fiofuels Center—Hart Energy ConsultingGreater Houston PartnershipGreen Innovation Connect by JETRO LA and Nikkei AmericaHearth & Home TechnologiesHole Solutions Ltd.Hurst BoilerIDA IrelandIllinois Finance AuthorityInternational Business ForumInvestment in DenmarkInvestment New ZealandItalian Trade CommissionJapan External Trade Organization (JETRO)Johnson Controls, Inc.American Council On Renewable EnergyExecutive Summary Report 76

EXHIBITORS ContinuedKamatics Corp.Karra Green EnergyKubota Membrane USA Corp.Latin American and Caribbean Council on Renewable EnergyMassachusetts Office of Business DevelopmentMcKenna Long & AlridgeMenova Energy Inc.National City Energy CapitalNational Renewable Energy LaboratoryNebraska Department of Economic DevelopmentNEED ProjectNevada Commission on Economic DevelopmentNew Zealand Trade and EnterpriseNorth American Clean EnergyNorth American Dismantling Corp.North American Windpower/Solar IndustryNY Loves Clean TechOrmat TechnologiesOverseas Private Investment CorporationPellet Fuels InstitutePennsylvania State University, ThePenton Media / CONTRACTOR MagazinePiper Jaffray & Co.PowerSat CorporationPremium Solar LLCPrice BIOstockProject EverGREEN SchoolsRechargeREEEP-North American SecretariatRemineralize the EarthReznick GroupRiso Kagaku Corp.RSMR Global Resources, Inc.SCION ResearchSentecShell Energy North AmericaSkyBuilt PowerSkyFuel, Inc.Sol Inc.Solar Millennium, LLCSolar StikSolarDockSolel Solar Systems Ltd.Solid Sealing Technology, Inc.SSD Western, LLCSterling PlanetStoel Rives LLPSurvey Marketing & Consulting, S.L.Suzlon Wind Energy Corp.Tennessee Economic PartnershipTetra Tech EC IncThe High Ground of TexasThermaSource, Inc.Today’s Energy Solutions Mag/GIE MediaUnited States Department of CommerceUniversity of DenverUniversity of Maryland, A. James Clark School of EngineeringUS Forest ServiceUTC PowerVibrAlign Inc.Waste SolutionsWeis Environmental LLCWestern Area Power AdministrationWindLogicsWindpower Monthly News MagazineWINPRO Co. Ltd.Wyoming Business CouncilZephyr Corp.American Council On Renewable EnergyExecutive Summary Report 77

Opening SessionOverviewIn the opening session, industry leaders addressed the major issues facing renewable energy today,including the uplift from President Obama’s call for a doubling of renewable energy in three years,to the financial crisis and its downdraft effect on today’s markets.SpeakersMichael Eckhart, President, American Council On Renewable Energy (ACORE)Katrina Landis, Group Vice President, Alternative Energy, BPHermann Scheer, Member, German BundestagGeneral Wesley Clark (Retired), Chairman of EWT Americas and Co-Chairman of Growth EnergyJohn Geesman, Former Commissioner, California Energy CommissionNancy Floyd, Founder and Managing Director, Nth PowerCathy Zoi, CEO, Alliance for Climate Protection, We CampaignKateri Callahan, President, Alliance to Save EnergyJohn Cavalier, Managing Partner, Hudson Clean Energy PartnersKatrina LandisGroup Vice President, Alternative Energy, BPSummaryTo begin the Opening Session of RETECH 2009,Katrina Landis spoke about today being the“best of times and the worst of times” forrenewable energy. The current global and U.S.economic recessions pose challenges for allrenewable energy businesses. The commoditiesand financial markets are reeling, but in manyways, Landis said, “the prospects for renewableenergy have never been more robust.”“The American Recovery andReinvestment Act of 2009contains a stunning amount ofmuch-needed support forrenewable energy.”American Council On Renewable EnergyExecutive Summary Report 9

The ARRA contains the following items:• Funds earmarked for the development of a smart grid to allow for widespread distribution andconsumption of renewable energy,• A three-year extension to the Production Tax Credit system and the option to use, instead, a 30% ITC,• Funding for new projects to develop carbon-capture technology and business models, with $1.5billion allotted to develop a competitive process for industrial projects,• Project financing and credits for work on advanced biofuels, and• The ability for the solar industry to monetize ITCs and to gain support for flagship deployments onpublic buildings.“It’s clear that the ObamaAdministration and the Congress arejust warming up…”Congress is poised to enact a RenewableEnergy Portfolio Standard, and theAdministration is acting decisively to realize twoof its critical energy goals:1. To increase renewable energy production to 2 5%by 2025, and2. To reduce carbon emissions by 80% by 2050.Besides being an oil and gas company, BP is amajor alternative energy company.BP’s Alternative Energy Division was established in 2005,with a commitment to invest $8 billion over a 10-year timehorizon. BP invested well over $1 billion last year, with 70%of that investment being made in the US.“Our investments are not gestures, butevidence of our belief that the worldrequires a mix of energy in whichrenewable and alternatives play anincreasingly important part.”BP has 20,000 MW of wind projects in development, with1,000 MW currently in production. These projects havecreated over 1,000 jobs during construction, and over 60full-time jobs for operations and maintenance in ruralAmerica.The company is increasing its involvement insolar, industrial-scale hydrogen, carbon capture andstorage, and in biofuels—notably in bio-butanol andcellulosic ethanol.“What we do, all of us in this room,has moved center stage. The spotlight ison us and expectations are high. Onceagain, America has the opportunity tolead…”BP has set some conditions it feels are neededin order to provide the huge amounts of energythe world will demand within the next 20 years.• Energy companies and the government must haveconfidence in each other to move forward.• Fiscal and regulatory policies must create a levelplaying field and the central mechanism is to pricecarbon; the cost of emissions needs to be factoredinto all energy products and services through capand trade systems.American Council On Renewable EnergyExecutive Summary Report 10

• BP is an ardent supporter of a federal RPS, butbased on the example of the UK, BP knows that anational RPS, alone, is not sufficient if we are tomeet the 25 x 25 goal.• The US federal and state governments mustremove barriers to the scale-up of transmissionsystems. Washington should authorize constructionof interstate transmission lines. Thelatest smart grid proposal is a good first step.“The future is in our hands. This is ourindustry’s big chance. Can we provethat we can deliver energy that is cleanand secure? Can we help put Americaback to work? Can we performefficiently and sustainably? I say yes,we definitely can.”Hermann ScheerMember, German BundestagSummaryIntroduced as “the founder of the World Councilfor Renewable Energy,” Hermann Scheer gave aglobal perspective on the many crises that weface and the why renewable energy can providesolutions to many of the world’s problems.“At WIREC, one year ago, I starteda speech by saying, ‘There is goodnews and bad news. The badnews was: oil runs out. The goodnews was—and is—oil runs out.’”It is not just one problem behind the need to change from fossil and nuclear fuels to renewableenergy, said Scheer, but actually 7 different world energy crises that compel a global shift toclean, renewable sources:• The climate change crisis,• The power availability crisis,• The crisis of third-world countries becoming more and more unable to pay their energy bills(currently 40 countries in the developing world pay more for oil than they earn through exportof goods),• The health care crisis, which, Scheer said, is caused in many ways by the world’s dependence ontraditional energy,• The increasingly dangerous threat of nuclear proliferation,• The imminent and increasing water crisis (conventional energy production is one of the top threewater consumers), and• The increasing agri-crisis which encompasses loss of land, particularly the loss of arable soil dueto the increased use of chemical fertilizers and pesticides.American Council On Renewable EnergyExecutive Summary Report 11

“How do we organize ourselves to make use of renewable energy on a globalscale? We need to think in terms of technological revolutions.”Some other poignant quotes from Scheer’s speech including the following:“We cannot wait for a global treaty to begin our revolution.”“We can’t wait for governments and companies to decide they will make the shiftafter someone else does it first.”“We should make this revolution in renewables because it is right.”SummaryGeneral Wesley ClarkChairman of EWT Americas and Co-Chairman of Growth EnergyWesley Clark, a retired Army General and formercandidate for President, spoke at the OpeningSession of RETECH 2009, and framed hisdiscussion around issues of national security. TheUnited States remains dependent on importedfossil fuels, and also faces the long-term threat ofglobal climate change. Additionally, not only doesrenewable energy provide energy security, but it isalso an engine for economic growth and profit.General Clark said that “We’ve got the buildingblocks to really take the economy forward and therenewables sector forward in a way that it hasnever been taken before.”“This is a national security issuebecause of what it means whenyou have a dependence onimported fuels.”American Council On Renewable EnergyExecutive Summary Report 12

Our dependence on fossil fuels is a nationalsecurity threat for two primary reasons.1. Importing vast quantities of oil necessitatesstability in oil-producing countries, and thisstability can only be maintained with a strongAmerican military presence in those countries.2. Without proper action to mitigate climatechange, the world could see conflict resultingfrom the displacement of people, disruption ofagriculture, and the spread of disease.“If we’re going to get our energyindependence, if we’re going to dealwith climate change, if we’re going towork harmoniously with developingpowers in Asia, we have to get our ownhouse in order.”General Clark offered three solutions.1. Raise the 10% cap on ethanol blending to helpreduce oil imports.2. Open the financial markets with incentives andregulations.3. Help enable small investors, entrepreneurs, andlocal communities to develop distributed windand solar energy projects.General Clark said that biofuels are crucial if weare to reduce our consumption on foreign oil inany meaningful way. Vehicle electrificationoffers a feasible long-term option for cleantransportation, but only when we are able toproduce significant amounts of electricity fromclean energy resources. Before this is apossibility, we need to build new transmissionlines and other infrastructure. Biofuel, on theother hand, provides a near-term solution.“It’s a national security issue. It’s aglobal issue. The government is goingto help us, but we’re in charge. This isa private enterprise operation. We haveto articulate our needs, and we have tobring the technology, the investors, andthe landowners and developerstogether to do this. It’s the only wayit’s going to get done, and we’re theones who are going to do it.”“What we should be hoping for is toreplace imported petroleum withbiofuels that are environmentallyfriendly, and leading us into an era ofgreater reliance on electrictransportation and electric power,commensurate with our ability to createrenewable and sustainable electricpower, as opposed to drawing on oursources that contribute to globalwarming problems.”American Council On Renewable EnergyExecutive Summary Report 13

John GeesmanFormer Commissioner, California Energy CommissionSummaryJohn Geesman, former Commis-sioner of theCalifornia Energy Commission, focused hisspeech around renewable energy policy, atboth the state and federal level. He seesPresident Obama’s administration as a turningpoint for renewable energy policy and theindustry in general.“The President has set a clear,measurable, tangible near-term goalthat will occur or not on his watchto double the American use ofrenewable energy in the next threeyears. That provides a benchmarkagainst which every governmentalinitiative, the performance of everybureaucracy in the executive branch,the resistance or support of everyinterest group among Americansociety, can and will be measured.”A number of important policy changes are likelyto occur in the near future.1. A national renewable portfolio standard is onthe horizon, as well as climate changelegislation.2. Instead of supply-side legislation, like taxincentives to promote development, the countrywill begin to see demand-side policies as well.3. In order to double renewable energy in threeyears, massive transmission expansion isneeded.4. To create a demand-side market for renewableenergy, states and localities will begin to passfeed-in tariff policies modeled after theEuropean policy.“I would argue that the imperative forfederal jurisdiction in the area is tocreate virtuous cycles where states areboth allowed and encouraged to exceedfederal performance standards.”State and local governments have initiatedmuch of the progress in renewable energydevelopment so far. Federal policy must allowthem to continue to be innovative and creativewith their policymaking efforts.“There is something that everyone inthis country can do, no matter whereyou live, to influence your governmentat the appropriate level to take actionto encourage renewable energy. Comedown and make your voices heard.”American Council On Renewable EnergyExecutive Summary Report 14

Nancy FloydManaging Director, Nth PowerSummaryNancy Floyd, one of the first venture capitaliststo invest in renewable energy, spoke at RETECHabout the history of venture capital investmentin renewable energy, and how the energy trendshave shifted since the 1970s.“The issues that we are tryingto solve today didn’t stopescalating as we returned to‘normal’ in the 80s and 90s.”In the late 1970s, as oil prices rose as a resultof the OPEC oil embargo, President Cartercalled for energy independence. These highprices led to new research and developmentfunding for renewable energy technologies,comprehensive energy legislation, and the firstcommercial wind farm in 1982.As oil prices declined and came back to“normal,” however, government support forrenewable energy disappeared, and so didventure capital investment. Even as governmentsupport and private investment dwindled, theproblems associated with fossil fuel dependenceand carbon emissions were exacerbated.“The new president has connected thedots, that renewable energy addressesall of these issues, and addresses themin a way that is going to create jobs,that is going to create the flow ofinvestment capital.”“We’ve had unprecedented breakthroughsin technology in part fueledby the flow of investment capital thatonly started in earnest eight years ago.”• Government R&D fuels technological breakthroughsthat lead to venture capital investment.• Research and development funding for energy fellbetween 1987 and 1997, but increased beginningin 2007.“We are seeing not only breakthroughsin technology, butunprecedented shifts in the marketplaceand consumer mindset.”There is currently a “perfect storm” forrenewable energy development, driven by thefollowing factors:1. Perfect competition for energy,2. Dwindling resources,3. Expensive resources,4. Energy security concerns, and5. Climate change.“This is the industry that is going tolead the economic recovery of thiscountry and of the world.”American Council On Renewable EnergyExecutive Summary Report 15

Cathy ZoiCEO, Alliance for Climate Protection, We CampaignSummaryCathy Zoi, CEO of the Alliance for ClimateProtection, explained the importance ofcommunicating the problems associated withclimate change—and the potential solutions—tothe American public. The Alliance for ClimateProtection seeks to educate and engage thepublic to ultimately “create that political spacefor better policies.”“Our job is to persuade theAmerican people and peopleelsewhere in the world of theurgency and solvability of theclimate crisis.”The Alliance for Climate Protection has over twomillion members in all 50 states. Theorganization’s goal is to move people “up theladder of engagement,” from “deniers” at thebottom, to “activists” at the top.1. Activists 3. The confused2. The engaged 4. The deniers“The naysayers are very well-fundedand are going to continue to lobbyagainst the policies that are going totransition us to a new economy.”The clean energy movement must alwayscompete with well-funded fossil fuel interests,who can pay millions of dollars for televisionadvertisements in addition to lobbyingcampaigns. The We Campaign is the first groupwith adequate resources to compete with and,hopefully, weaken the negative messagepresented by fossil fuel advocates.In a speech in July of 2008, Al Gore called forthe United States to adopt a goal of 100% cleanenergy within ten years, as a way of improvingthe economy and the environment, andimproving our national security.“We can address all those things if wespend the next ten years and transformour energy economy once and for alland become 100% clean.”To do it, we need the factors below:1. Energy efficiency,2. Renewable energy,3. A unified national smart grid, and4. A renewable energy “ramp-up.”A 100% clean energy goal does not necessarilymean 100% renewable electricity in 10 years.The We Campaign’s plan necessitates whatequates to a 50% renewable electricitystandard, with the balance of electricity beingmet by energy efficiency and other non-carbonemitting generation facilities, like nuclear andexisting hydropower. This plan will get thecountry to 20% below 1990 levels of carbonemissions by 2020.“This is possible if we can allowourselves to imagine it.”American Council On Renewable EnergyExecutive Summary Report 16

Kateri CallahanPresident, Alliance to Save EnergySummaryKateri Callahan of the Alliance to Save Energyhighlighted the natural and symbioticrelationship between the energy efficiency andrenewable energy industries. The two industrieshave similar interests and goals, and thetechnologies complement each other.“It’s a prerequisite to work withrenewable energy if we’re going toachieve our goal of widespreaddeployment of energy efficiency.”“I think it’s in the best interest ofthe renewable energy communityas well to use us, to work with us,to realize your goal of widespreaddeployment.”The Alliance to Save Energy has a narrowmission: to promote energy efficiency, for ahealthier economy, a cleaner environment, andgreater energy security.“Energy efficiency can be a foundationfor renewable technologies and canmake their use cost-effective,particularly in the built environment.”President Obama has a sound policy agendarelated to energy and efficiency and renewableenergy, and he understands how the two worktogether, and he has put together an “A team” ofCabinet officials who are devoted to the cause.The president’s platform on energy efficiencyincludes:• Reducing electricity demand,• Building net zero energy buildings,• Overhauling appliance standards, and• Weatherizing a million homes a year.“More is coming.”Additional policy actions are on the horizon thatwill boost energy efficiency.• An Energy Efficiency Resource Standard (EERS)• A national renewable portfolio standard• Climate legislation“We’re about to rebuild our economyon development and deployment ofenergy efficiency and clean energy.”Callahan cautions that we are facing long-termproblems, like climate change and energysecurity, that are easy to overlook in the shortterm.Thus, it is important to stay focused onlong-term issues and solutions.“The US economy is now the leastefficient of any industrialized economyin the world. We need to be the mostefficient. And when we do that, and aswe do that, we can become a globalleader in the production and use ofrenewable energy.”American Council On Renewable EnergyExecutive Summary Report 17

John CavalierManaging Partner, Hudson Clean Energy PartnersSummaryJohn Cavalier presented a cautious but somewhatoptimistic outlook on renewable energyfinance and policy in 2009. He affirmed theactions of President Obama and his administrationand asserted his support for the stimulusbill, but also acknowledged that policy cannotsolve the crisis—the private sector must act tostabilize the financial markets.“There are macroeconomicinfluences at work that are wellbeyond the influences of thepresident.”These macroeconomic influences are as follows:1. Equity is now more expensive, and capital isless accessible.2. Banks are less willing to lend.“The full impact of the economicstimulus program will not really arriveuntil next year, but there is hope.”Strong businesses with good management,sound business plans, and viable technologieswill find funding. However, when the cost ofcapital escalates and fluctuates, capital doesfreeze. Thus, to initiate the flow of capital, wemust have stability in the financial system.With the stimulus bill, the administration has“opened the door,” but the industry musttake advantage of the opportunity. Andconsumers need to be educated if they aregoing to be supportive of renewable energy aand climate policies.“The renewable energy communitymust be very careful in its legislativedialogue. ACORE does a tremendousjob in facilitating that dialogue.”The renewable energy industry must stay unifiedin its message and goals, and cannot permit our“detractors to conquer us.” It is also importantto set realistic goals for the industry and forpolicy, to increase the perception of theindustry’s viability.“It is the entrepreneur that has driventhe success in this industry. Let’sprotect the entrepreneur as we goforward.”“We are at a wonderful inflection pointin this industry. Let us all seize the day.”American Council On Renewable EnergyExecutive Summary Report 18

DisclaimerThe following report is a collection ofsummaries from presentations made atRETECH 2009: Renewable Energy TechnologyConference and Exhibition in Las Vegas, Nevadabetween February 25 and February 27, 2009.The opinions expressed in the following reportdo not necessarily reflect the views of theAmerican Council On Renewable Energy (ACORE)as an organization or any individual employed bythat organization. The opinions in the report arethose of the speakers at the conference and anyopinions conveyed in their presentations givenat that time. Citations in the report only referencethe materials, such as presentations,documents, and other files, given to ACORE bythe speakers at the conference for educationalpurposes. The report does not attempt to citeother sources outside of the speakers’ materialsand any reference to an external source hasbeen transposed from materials given to ACORE.SpeakersPlenaryDan Reicher, Director of Climate Change and Energy Initiatives, Google, Inc.Hermann Scheer, Member, German BundestagKateri Callahan, President, ASEKatrina Landis, Group Vice President, Alternative Energy, BPMichael Eckhart, President, American Council On Renewable Energy (ACORE)Cathy Zoi, CEO, Repower America·John Geesman, Former Commissioner, California Energy CommissionNancy Floyd, Founder and Managing Director, Nth PowerJohn Cavalier, Managing Partner, Hudson Clean Energy PartnersGeneral Wesley Clark (Ret.), Chairman of EWT Americas and Co-Chairman of Growth EnergyAdvanced VehiclesEddie Sturman, Engineer, Sturman IndustriesPat Cadam, President, Green GearsSanjeev Choudhary, General Manager, PHEV Systems, A123 SystemsTom Mack, President & CEO, AHL-TECH, Inc.Todd Suckow, Senior Engineer, Hyundai-Kia America Technical EngineerMike Harrigan, Vice President of Business Development, Coulomb TechnologiesKathryn Clay, Director of Research, Alliance of Automobile ManufacturersAmerican Council On Renewable EnergyExecutive Summary Report 66

BiofuelsChristopher Groobey, Partner, Baker & McKenzie LLPMaxwell Shauck, University Research Professor, Biofuels and Aviation, University of HoustonCraig Shealy, CEO and President, OsageDan Nolan, Strategic Management Services, Sabot 6, IncDoug Berven, Director of Corporate Affairs, POETErnie Shea, Project Coordinator, 25x25Greg Keenan, Vice President of Business Development , Virent Energy Systems, Inc.Helena Chum, Senior Advisor, National Renewable Energy LabJoel Velasco, Chief Representative, UNICAJohn Walker, Chief Executive Officer, P.R.I.M.E., CorpJonathan Gorham, Director, Business Development, QterosKevin Kephart, Vice President for Research and Dean of the Graduate School - South Dakota State University, SouthDakota State UniversityMichael McAdams, Policy Director, Brownstein Hyatt Farber & Shreck LLPPhil Madson, President, KATZEN International, Inc.Richard Mount, President, North Shore EnergyRobert Do, Solena GroupBruce Lisle, Past President, Pellet Fuels InstituteDan Henry, Vice President and Chief Technical Officer , Pellet Fuels InstituteDick Carmical, CEO, The Price CompaniesErvan Hancock, Manager, Renewable & Green Strategies, Georgia PowerBrian Murphy, Stratex EnergyGary Elliott, Principal, International Applied Engineering, Biomass Conversion and Alternative Fuels SpecialistGeoffrey R. Morgan, Partner, Michael, Best & Friedrich LLPJanet Hawkes, Strategic Partner, RPM EcosystemsJohn Ganzi, President, Environment FinanceJon Strimling, President, American Biomass Distribution, LLCMelissa VanOrnum, Marketing Manager, GHD, IncMichael Totten, Chief Advisor, Climate, Water and Ecosystem Services, Conservation InternationalReed Wills, President, AdageRichard Munson, Senior Vice President, Recycled EnergyRobert Cleaves, President, Biomass Power AssociationMark Cherry, Chief Scientist, Smart Plugs CorporationMark Niederschulte, Chie Operating Officer, INEOS BioWendel Dreve, Managing Member, Farmer’s Ethanol LLCDr. Marion Gilliland, Chief Communications Officer, Farmer’s Ethanol LLCAmerican Council On Renewable EnergyExecutive Summary Report 67

John McKee, Senior Project Manager, Nova Biosource Fuels IncJim Schreck, Chief Technology Officer, BEST EnergiesBill Faulkner, Vice President of Buisness Development, Draths CorporationClimate & CarbonFabrizio Donini-Ferretti, Head of Energy, Dexia Credit LocalJohn Cavalier, Managing Partner, Hudson Clean Energy PartnersJosh Green, CEO, Verdeo GroupMichael Naylor, Director and Founder, Canopy Capital Limited; Chairman, Advisory Board The Prince’s RainforestsProjectMichael Zimmer, Of Counsel, Thompson Hine LLP and Executive in Residence- Ohio University Voinovich School ofLeadership and Public AffairsAimee Christensen, Founder & CEO, Christensen Global StrategiesBilly Parish, Co-Founder, Energy Action CoalitionFredrick R. Anderson, Partner, McKenna Long & Aldridge LLPHoward Learner, President, Environmental Law and Policy CenterJohn Kadyszewski, Director, American Carbon Registry, Winrock InternationalBrian Prusnek, Vice President, Climate Change CapitalGraeme Martin, Manager of Business Development - Environmental Products, Shell Energy North AmericaGraham Noyes, Partner, Stoel RivesPeter Gray, Partner, McKenna Long & AldridgeSonia Medina, US Country Director, EcoSecuritiesEconomic DevelopmentAdrian LaTrace, Vice President and General Manager, Acciona Windpower North AmericaDaniel Kammen, Class of 1935 Distinguished Professor of Energy, , Energy and Resources Group, and FoundingDirector, Renewable and Appropriate Energy Laboratory, University of CaliforniaDavid Benson, Partner, Stoel RivesDon LaVada, Director of Consumer Services and Events Management, NYSERDADouglas Ridge, Director, Employer Initiatives, Texas Workforce CommissionJohn Filan, Ex Director, Illinois Finance AuthorityKenneth Locklin, Director - Finance & Investment, Clean Energy GroupMark Parkinson, Lt Governor of Kansas,Michael Butler, Chairman & CEO, Cascadia CapitalMichael Peck, Spokesman & Head of Media Relations, GamesaMoana Erickson, Advisor to the Center for Economic Research, American Council On Renewable Energy (ACORE)Nancy Hamilton, Senior Policy Advisor, Oregon Economic Development & Workforce, Office of the GovernorAmerican Council On Renewable EnergyExecutive Summary Report 68

Patrick Cloney, Executive Director, Massachusetts Clean Energy CenterRoss Tyler, Director of Clean Energy, Maryland Energy AdministrationGeothermal & Hydro (Ocean)Daniel Ellis, President, ClimateMasterEdward James Wall, Geothermal Technologies Program Manager, Department of EnergyJeff Eckel, President & CEO, Hannon Armstrong CapitalDita Bronicki, CEO, Ormat Technologies, Inc.Tracy McKibben, Managing Director, Environmental Banking Strategy, Citigroup Global MarketsBurt Hamner, President, Grays Harbor Ocean Energy Co. LLCTrey Taylor, President, Verdant PowerWayne Krouse, Chairman & CEO, Hydro Green EnergyPaul Thomsen, Director for Policy and Business Development, Ormat Technologies, Inc.Green InfrastructureAndrew Singer, Senior Vice President, Constellation NewEnergyMatthew Clouse, Director, Renewable Energy Policy and Programs, US Environmental Protection AgencyGary Westerholm, Executive Director, Project Evergreen SchoolsJeff Krech, Manager of Dell’s Global Facilities Global Sustainability Program, DellJerome Ringo, President, Apollo AllianceLowell Rasmussen, Vice Chancellor, University of Minnesota MorrisMarty Sedler, Director, Global Utilities and Infrastructure, Intel CorporationMary Tucker, Energy Program Manager, City of San JoseMichelle Price, Base Energy Manager- 99 CES/CEAO, US AirforcePaul Polizzotto, CEO, EcoMediaRachel Gutter, Sr. Manager, Education Sector, U.S. Green Building CouncilRoger Ballentine, President, Green StrategiesChristine Ervin, President, Christine Ervin Co.Elizabeth Francis, Partner, Mario Cucinella Architects SrlDeb Kuo, Director, Real Estate, Exelon CorporationRalph DiNola, Principal, Green Building ServicesShelley Fidler, Principal, Managing Director, Environmental and Governmental Resources, VanNess FeldmanDaniel Kreeger, Co-Founder and Interim Director, Association of Climate Change Officers (ACCO)Paul Gerner, Associate Superintendent of Utilities, Clark County School District, Las Vegas, NVKevin Hydes, CEO, Integral and Past Chair, World Green Building CouncilAmerican Council On Renewable EnergyExecutive Summary Report 69

HydrogenDavid Haberman, President, IF, LLCJeff Serfass, President, National Hydrogen AssociationRobert Friedland, President & CEO, Proton Energy Systems, Inc.Robert Remick, Director, Hydrogen Technologies & Systems Center, NRELSandy Thomas, President, H2Gen InnovationsInternationalCraig O’Connor, Director, Environmental Exports, Export-Import Bank of the United States.Sebastian Meyer, Director, Research and Advisory, Azure InternationalDavid Wortmann, Director Renewable Energy & Resources, Germany Trade and InvestDavid Fulton, Advisor & Director of Business Liaison , The World BankErnesto Macias Galan, President, Alliance for Rural Electrification (ARE), Former President, European PhotovoltaicIndustry Association (EPIA)Jing Su, Director of US-China Program, ACOREJudy Siegel, President, Energy & Security GroupJuergen Morhard, Counselor, Head of the Economic and Commercial Section, German Embassy WashingtonLouis Schwartz, President, China Strategies, LLCLynn Tabernacki, Senior Manager, Renewable Energy and Sustainable Development Finance, OPICMark Riedy, Partner, Andrews Kurth LLPMike Eckhart, President, ACOREMike Rosenfeld, Vice Consul, UK Trade & InvestmentOhene Akoto, Country Director, Jatropha AfricaPeter Richards, Communications Director, REEEPYong X. Tao, Associate Dean and Professor, Florida International UniversityFredrick L. Potter, Executive Director, Hart Energy ConsultingTammy Klein, Executive Director, Global Biofuels Center & Americas, Hart Energy ConsultinSuresh Hurry, Adviser, IT PowerRyan Hodum, Senior Associate, David Gardiner and Associates LLCBob Freling, Executive Director, Solar Electric Light Fund (SELF)Stephanie Hollis, Chairman of the Board, Solar StikPolicyBill Holmberg, Chairman, Biomass Coordinating CouncilGeneral Wesley Clark (Ret.), Former NATO Allied Supreme CommanderDennis McGinn, Vice Admiral, United States Navy, Retired, and Chairman and CEO, RemoteReality CorporationAmerican Council On Renewable EnergyExecutive Summary Report 70

Gal Luft, Executive Director, Institute for the Analysis of Global SecurityR. James Woolsey, Venture Partner, Vantage PointRobbie Diamond, President & CEO, Securing America’s FutureRobert McFarlane, Chairman, McFarlane AssociatesProject FinanceJohn Anderson, Senior Managing Director, Head, Power & Project Finance, John Hancock Financial ServicesKevin Walsh, Managing Director, GE Energy Financial ServicesNeil Auerbach, Managing Partner, Hudson Clean Energy PartnersSchuyler (Skip) Grow, Managing Director, Lazard Freres & Co.Thomas White, Director, Stark InvestmentsR&DClark Gellings, Vice President - Technology, EPRIDenis Hayes, President, Bullitt FoundationRob Church, Vice President, Industry Research and Analysis, American Council On Renewable EnergyStanley Bull, Associate Director Emeritus, Science & Technology , NREL and Director of Energy Programs, MRISolar - CSPArnold Leitner, CEO and President, SkyFuelAvi Brenmiller, President, SolelErik Ellis, Vice President, Commercial Operations, AusraScott Frier, Chief Operating Officer, Abengoa SolarCharlie Ricker, Senior Vice President, Marketing & Business Development, BrightSource EnergyCraig Tyner, Senior Vice President, Engineering, eSolarRainer Aringhoff, President, Solar Millenium LLCSean Gallagher, Vice President, Market Strategy & Regulatory Affairs, Stirling Energy SystemsSolar - PVAdam Browning, Executive Director, Vote Solar InitiativeRichard Raeke, Director of Business Development, Borrego SolarBryan Ashley, Vice President of Marketing and Sales, SunivaChristopher O’Brien, Head of Market Development, North America, Oerlikon SolarConrad Burke, President & CEO, InnovalightDavid Arfin, Vice President, Customer Finance, Solar CityPaul McMillan, Principal, Utility Group, SunPowerAmerican Council On Renewable EnergyExecutive Summary Report 71

Eric Daniels, Vice President, Technology, BP SolarLarry Kazmerski, Executive Director, Science & Technology Partnerships, National Renewable Energy Laboratory (NREL)Chad Sachs, Senior Vice President of Finance, MMA Renewable VenturesPaul Wormser, Senior Director, Engineering and Product Development, Sharp SolarSteve Chadima, Vice President, External Affairs, Suntech AmericaThomas Sauer, CEO, EXXERGYTravis Bradford, President, Prometheus InstituteChris Shirk, Solar Module Assembly Science and Technology Manager, Dow Corning Solar SolutionsU.S. Renewable Energy MarketplaceAlan Nogee, Director, Union of Concerned ScientistsLisa Frantzis, Managing Director, Navigant ConsultingMark Parkinson, Lt Governor of Kansas,Wendolyn Holland, Special Advisor, Commericalization, United States Department of Energy, Office of Energy Efficiencyand Renewable Energy (EERE)Ethan Zindler, Head of North American Research, New Energy Finance·Eli Katz, Counsel, Chadbourne & Parke LLPUtilityBill Capp, President & CEO, Beacon PowerArthur O’Donnell, Executive Director, Center for Resource SolutionsTim Roughan, Director of Distributed Resources, National GridBill Leighty, Director, The Leighty FoundationClint Wilder, Contributing Editor, Clean EdgeDan Rastler, Technical Leader, Energy Storage and Distributed Generation Program, EPRID’Juan Hernandez, President & CEO, Sun Energy GroupErvan Hancock, Manager, Renewable & Green Strategies , Georgia PowerHal La Flash, Director, Emerging Clean Technology Policy , Pacific Gas & Electric CompanyHenry Durrwachter, Director, ERCOT Market Services , Luminant Energy CompanyJoseph Rossignoli , Director, Regulatory Policy, National GridLinda Shaw, President, Future Energy DevelopmentLisa Frantzis, Managing Director, Navigant ConsultingMichael Carlson, CIO and Vice President, Xcel EnergyPaul Kuhlman, Advisor , Ice Energy Inc.Reid Detchon, Executive Director, Energy Future CoalitionRoger Feldman, Partner, Andrews KurthAmerican Council On Renewable EnergyExecutive Summary Report 72

Daniel Kammen, Class of 1935 Distinguished Professor of Energy, Energy and Resources Group, and Founding Director,Renewable and Appropriate Energy Laboratory, University of CaliforniaJohn Bohn, Commissioner, California Public Utilities CommissionJohn Geesman, Former Commissioner, California Energy CommissionWilliam Massey, Counsel to COMPETE Coalition (and former FERC Commissioner), Partner, Covington & BurlingCheri Olf, Director of Education and International Workforce, American Council On Renewable Energy (ACORE)R. James Woolsey, Venture Partner, Vantage PointJohn Burges, Managing Director, Knight Capital MarketsLois Barber, Executive Director, EarthActionMurray Cameron, Chief Operating Officer, Phoenix SolarWilson Rickerson, Principal, Rickerson Energy StrategiesMel Jones, CEO, Sterling PlanetNate Hanson, VP, NextEra Energy ResourcesWilliam Hassenzahl, Former Chairman of the Board, Electricity Storage AssociationJoseph Kerecman, SVP for Market Development and Strategy, Viridity EnergyVentureDon Wood, Managing Director, Draper Fisher JurvetsonAdam Oliveri, Managing Director, SecondMarketErik Straser, Partner, Mohr Davidow VenturesIra Ehrenpreis, General Partner, Technology PartnersJulie Muraco, Managing Partner, Praeditis Group LLCCorinne Figueredo, Head of Cleaner Technology & Sustainable Business Innovation, International Finance Corporation (IFC)Robert Peterman, Senior Manager, Global Clean Technology, Toronto Stock Exchange and TSX Venture ExchangeAlex Bernstein, Co-Head of West Coast Banking, Ardour CapitalMichael Ware, Managing Director, Good EnergiesErik Strasser, Partner, Mohr Davidow VenturesRobert Peterman, Senior Manager, Toronto Stock ExchangeAlex Bernstein, Co-Head of West Coast Banking, Ardour CapitalWindAnntonette Alberti, Vice President, Tetra TechBarrett Stambler, Vice President, Renewable Origination, Iberdrola Renewables, Inc.Dan Juhl, CEO and Chairman, Juhl Wind, Inc.David Hastings, Vice President Development, Western Region, Acciona Energy North America Corp.Ed Feo, Partner, MilbankJames P. Lyons, Chief Technology Officer, Novus Energy PartnersAmerican Council On Renewable EnergyExecutive Summary Report 73

John Eber, Managing Director-Energy Investments, JP MorganMark Ahlstrom, CEO, WindLogicsMatt Ferguson, Lead/Principal of National Renewable Energy Practice, Reznick GroupMike Hess, CEO, Mariah PowerRichard Krauze, Director of North American Business Development, 3TIERRobert Thresher, Research Fellow, NRELSteve Saylors, Chief Electrical Engineer, Vestas-American Wind Technology, IncAmerican Council On Renewable EnergyExecutive Summary Report 74

Biomass, Biofuels, and Advanced VehiclesOverviewCurrently, there are major opportunities in thebiopower field given the rising cost of qualitycoal, new federal requirements for increasedproduction of renewable electricity, demandsfrom the federal government for the reduction ofgreenhouse gas emissions, and the availabilityof Renewable Energy and Carbon Credits.ConsensusAt RETECH, it was determined that biopower isan essential renewable energy solution to manyof our energy problems. Biopower encouragesbest practices in forest management, reducesreliance on fossil fuels, and contributes to ourenergy security. Biopower is also CO 2-neutral asCO 2is captured by feedstock growth.Additionally, biopower has the potential to be ahighly efficient energy source for transmissionlines built in support of renewable energy andenergy efficiency. Biopower is the idealcomplimentary technology to solar and windenergy given its ability to consistently meetbaseload requirements.“New high corn oil hybrids are availablefor producing biodiesel without loweringthe available fermentable sugars in the corn.With 10 million gallons of biodiesel per110 million gallon ethanol, the net carbonintensity of the resulting fuel streams issubstantially reduced.”– Jim Schreck, Chief Technology Officer, BEST EnergiesBiopower Economics & FinanceDevelopment constraints inhibit biopowerprojects. These constraints must be overcomethrough federal energy legislation.Seven serious project developmentconstraints on biopower projects wereidentified: feedstock and processing; energyconversion technology; siting (size and location);environmental impact; finance; operation andmaintenance (O&M); and (technological)know-how.It was clear at RETECH that biopower marketdevelopment is necessary to overcome projectdevelopment constraints.The need for a standardized national electric code wasalso discussed as every utility employs different regulationsfor connection and (these differences can delayconnection between different markets. Delays on transmissioncan be expensive and time-consuming.So far, federal incentives for the biopower market arelargely based around the American Recovery and ReinvestmentAct. This legislation has allowed the Investment TaxCredit to be used as an alternative to the PTC; extendingthe tax credit deadline through 2013; and expanded andsimplified the Loan Guarantee program.In order for the biomass power industry to meet its fullpotential, additional incentives will be required to increasefuel supplies and lower costs. The federal and stategovernments must support deployment of “state of theart” wood waste equipment. For collection, processingand transportation (improvements there must be anevaluation of successful strategies to access state andfederal lands. Wildfires are one of the largest CO2 sourcesin the US; we must consider improved land clearingtechniques for diseased or infested trees.The development of conventional and advancedbiofuels is fast paced, involving a variety ofdifferent feedstocks and technologies.American Council On Renewable EnergyExecutive Summary Report 19

The most popular and successful biofuel feedstocks,include cellulosic and woody biomass, biomass wastestreams, algae, and other resources. The technologiesresponsible for converting these biomass feedstocks intobiofuels are surprisingly multifaceted, ranging fromthermal, thermal chemical, yeasts, enzymes, acids andother chemicals, metals, chemical catalysts, and more.These technologies will emerge from their early demonstrationphase in 2009, and are expected to be in commercialproduction by 2010.Policy support for advanced biofuels is coming from stateand federal governments in the form of grants, loanguarantees and incentives – and most importantly,through the Renewable Fuels Standards and the VolumetricEthanol Excise Tax Credit.The sector must increase speed to market,providing an opportunity to streamline thepermitting process and de-risk capital forscaling-up operations.There must also be a focus on market-based solutions,including leveling the playing field in terms of technologyand incentives, in addition to rewarding performance forefficiency, volume, and quality. There must also be theencouragement of private investment to drive volume andjob creation. This can be done through carbon pricing andlong term policy commitments.The vision of the advanced biofuel industry is to utilizewaste and low cost carbon to produce fuel and energy, toreduce green house gas emissions, and deliver costeffective and sustainable solutions.Market development for the biofuel industryconsists of advanced forms of transportation bytruck, rail, barge, ship and pipelines.A second critical step for biofuel market development isproviding more blender pumps which will give drivers achoice of E-10, E-20, E-30 and E-85, in addition togasoline. Legislation is underway at both the state andfederal levels to increase the number of blender pumpfueling stations. However, more flexibility within theFederal government and EPA regulations is needed toincrease the choices towards E-20 and E-30 blends.In addition to market development a publicinformational campaign is needed to createawareness regarding the facts of the “foodversus fuel” issue.Can biomass streams be competitive fossilfuels? –Yes. Biomass becomes morecompetitive as fuel prices rise. Additionally,profits are made on co-products not justfuels and this results in proportionatefunding of research and commercialsupport in addition to the establishment ofhomogenous standards and testing.– Jonathan Gorham, Director, Business Development, QterosThis campaign should include information about indirectland use issues as facts and public perceptions are beingmanipulated to the disadvantage of the biofuels industryand its market development.Currently, the biofuel industry is facing afinancial standstill.Most operating plants are tight on capital. To alleviate thisproblem, many plants are undergoing rampant“restructurings” – or worse, refiners are becomingbiofuels producers.Elements of energy security revolve aroundthree main factors; fuel, infrastructure andprices. With energy security comes the needto build a global market, building globalmarkets means meeting demandssustainably.– Joel Velasco, Chief Representative, UNICAThere are two agreements which could alleviate thesefinancial issues; off-take agreements and tolling agreements.Off-take agreements are long-term purchaseagreements with pricing that takes into account theproducer’s variable costs (including feedstock andenergy). Whereas, tolling agreements are opportunistic“rentals” of the producer’s plant to those who can supplyfeedstock and sell the final product.If biofuel plants were to explore one of these two agreements,they would potentially be able to provide a steadyrevenue stream for financing, alleviate working capitalconcerns, provide a post-restructuring revenue solution,transform arms-length relationships to partnerships, andfinally, bring in much needed capital.American Council On Renewable EnergyExecutive Summary Report 20

Critical development opportunities for biofuelsinvolve a variety of agencies, and actors.• Government Laboratories• Acquisition and Purchasing Agents• Service Test and Evaluation Centers• Operational Requirements Developers• Contracting Officers• Bankers (Congress, Military and AcquisitionLeadership)• Operational Commanders• Defense ContractorsBio-based products are one of the fastestgrowing and ubiquitous sectors in the panoply ofrenewable energy products.In many cases, the best products are made from acombination of petrochemicals and biomass materialswith a larger component derived from biomass.The growth of the bio-based product industryhas placed a bigger burden on biomassfeedstocks, highlighting the need to optimizebiomass production while advancing naturalsystems.New, bio-based products can be found in vehicle interiors,paints, solvents, cleaners, oils and other lubricants,including adjutants for agriculture, fertilizers, pesticides,and pharmaceuticals. Federal regulations, concern overpublic health, and the need to decrease our use of fossilfuels are the principal drivers of the transition from oil torenewable fuels. Increased funding is needed for theUSDA’s Office of Bioenergy and Bio-based Products tofurther advance the potential for this new set of products.Major factors influencing the market develop-0ment of bio-based products heavily involvesupply chain changes; new product timelines/regulatory approvals; resolution of food vs. fuelcontroversies; market segmentation; and thesuccesses of early movers.In the next three years, the industry is uniquely positionedto focus on platform-wide development and scale up ofcommercial product offerings. This scale-up would includeproduct introduction of lower volumes of feedstock theuse of higher value materials; the development of anindustry-wide strateg, which will work at national and statelevels to introduce important incentives that stimulateindustry growth and create industry influence on theregulatory environment; and finally, transportation andregulation supply chain development.Hydrogen is another alternative fuel in thebiomass realm that was highlighted as alegitimate substitution for imported oil.Hydrogen is being made from many sourcesincluding biomass, but the cost, distribution,and marketing of hydrogen offers majorchallenges.The biggest obstacle is low electrical rates.We need standard renewable energy tariffrates to ensure that producing renewableenergy is economical.– Melissa VanOrum, Marketing Manager, GHD, Inc.There are many hydrogen productionopportunities available through various newtechnologies. These opportunities include thefollowing:• Hydrogen electrolyzed from water, generatedby utilities to make substitute naturalhydrogen gas for “peaker” plants with sidestreams for H2 supply,• Hydrogen from gasified biomass,• Hydrogen from landfill gas,• Hydrogen from geothermal gas, and finally• Hydrogen from natural gas.American Council On Renewable EnergyExecutive Summary Report 21

Advanced Vehicle TechnologiesToday, advanced operational transportationsystems are essentially old dogs that have beentaught new tricks—such as FFVs, airplanes andships/boats that are simply retrofittedcommercial systems.The Toyota Prius and Camry, and other hybridvehicles are yesterday’s models. Plug-inversions are, today, retrofits and they are notdesigned to run on alternative fuels.The next application of advanced vehicle technologiescould be large-sized transportation systems like trucks,buses, trains and boats.At RETECH 2009, panelists discussed at greatlength the future of vehicles that will run on anyrenewable liquid fuel and electricity with theassumption that there is more than enoughrenewable electricity to meet the needs of thesevehicles for years to come.Another old dog being taught a new trick, are legacyvehicles being retrofitted to run on E-10, not on higherblends. A small but significant number of pioneeringdrivers are running blends of ethanol up to E-40 in theirstandard vehicles. These vehicles seem to be workingeven better than FFVs, but some automakers and stateofficials object, and a not-yet certain disapproval from theEPA could affect opportunities for advanced transportationtechnologies in the future.In moving advanced vehicles forward, theindustry must focus on smart engines,maximum efficiency, fuel flexibility, noemissions, and minimum changes.The key challenge for electric vehicles isdomestic manufacturing of advancedbatteries. A strong domestic batterysupplier base will help all automakers inbringing electric vehicles, including plug-inhybrids, to market.– Kathryn Clay, Alliance of Automobile ManufacturersIn order to put advanced vehicle plans into action andmove the industry forward, companies in this space mustwork together to retro-fit commercial vehicles NOW byadding new engine applications.Alternative vehicle stake-holders must also promote thedevelopment of distributed power generation throughoutthe country.On the policy side, the industry must (1) promotepublic and private partnerships on advancedmanufacturing R&D for batteries and othercritical components, (2) invest in next generationbattery technologies, and (3) endorse tax creditsand government purchasing to create earlymarket certainty.In order for the transition to more advancedtransportation to occur, a progression of seed/series Afunds for around $2.5-5 million are needed to develop“shovel ready” projects. Given that states seem ready,customers are ready, and the technologies are present,new funding can galvanize the industry.Already the transportation sector has madegreat strides towards energy efficiency andalternative fuel uses.On road auto and truck use has experienced an increasedpresence of E-10, E-85, FFV, blender pumps and biodiesel.In aviation, Air New Zealand and Continental are usingblends up to B50, and Virgin Atlantic with B20.What’s wrong with existing engines? Onehundred and twenty year-old technologywithout flexibility or intelligence. Imaginebeing able to make minor changes toexisting engines, that will make them cleanand efficient and capable of using any fuel.– Eddie Sturman, Engineer, Sturman IndustriesPanelists discussed the importance of opening up newfields for renewables such as the development of true flexfuelvehicles by GM autos, GE locomotives, and P&W jets.New fuel production technologies are not enough to createprogress for advanced vehicle technologies; manufacturersmust invest money, time and R&D into developing newtransportation alternatives.American Council On Renewable EnergyExecutive Summary Report 22

ConclusionsSpeakers at RETECH 2009 maintained an optimistic view ofbiomass and biofuels and their ability to answer many of thenation’s energy, economic and security uncertainties. Despite thesubstantial potential of these biomass/biofuel industries, it is clearthat in moving forward, there are three key needs: greaterinvestment, policy incentives, and market development.Session ReferencesD2 - Biomass PowerReed Wills, President, Adage (Chair) [slides]Ervan Hancock, Manager, Renewable & Green Strategies, Georgia Power [slides]Brian Murphy, Stratex Energy [slides]Melissa VanOrnum, Marketing Manager, GHD, Inc [slides]Gary Elliott, President, International Applied Engineering [slides]D3 - Advanced Biofuels Production & Policy (Heavy Duty Engines)Robert Do, President & CEO, Solena Group (Chair) [slides]Michael McAdams, Policy Director, Brownstein, Hyatt, Farber & Shreck LLPHelena Chum, Research Fellow, National Renewable Energy Laboratory (NREL) [slides]Mark Cherry, Chief Scientist, Smart Plugs Corporation [slides]Maxwell Shauck, University Research Professor, Biofuels and Aviation, University of Houston [slides]D5 - Biomass Thermal EnergyRichard Munson, Senior Vice President, Recycled Energy (Chair)Dan Henry, Vice President and Chief Technical Officer, Pellet Fuels Institute [slides]John Ganzi, President, Environmental Finance [slides]Gary Elliott, Principal, International Applied Engineering, Biomass Conversion and Alternative Fuel Specialist [slides]Bruce Lisle, Past President, Pellet Fuels Institute [slides]E1 - Biomass Supply ManagementGeoffrey R. Morgan, Partner, Michael, Best & Friedrich LLP (Chair) [slides]Jon Strimling, President, American Biomass Distribution LLC [slides]Dick Carmical, CEO, The Price Companies [slides]Janet Hawkes, Strategic Partner, RPM Ecosystems [slides]Michael Totten, Chief Advisor, Climate, Water and Ecosystem Services, Conservation International [slides]American Council On Renewable EnergyExecutive Summary Report 23

E2 - Advanced Biofuels Production & Policy (Light Duty Engines)Greg Keenan, Vice President of Business Development, Virent Energy Systems, Inc. (Chair) [slides]Jonathan Gorham, Director, Business Development, Qteros [slides]Richard Mount, President, North Shore Energy [slides]John Walker, CEO, P.R.I.M.E. [slides]Mark Niederschulte, Chief Operating Officer, INEOS Bio [slides]E3 - Biofuels Market DevelopmentKevin Kephart, Vice President for Research and Dean of the Graduate School, South Dakota State University (Chair)Joel Velasco, Chief Representative, UNICA [slides]Ernie Shea, Project Coordinator, 25x25Christopher Groobey, Partner, Baker & McKenzie LLP [slides]Dan Nolan, Strategic Management Services, Sabot 6, Inc. [slides]E4 – Advanced Conventional BiofuelsPhil Madson, President, KATZEN International, Inc. (Chair) [slides]Doug Berven, Director of Corporate Affairs, POET [slides]Craig Shealy, President and CEO, Osage Bioenergy [slides]Wendel Dreve, Managing Member, Farmer’s Ethanol LLC [slides]Marion Gilliland, Chief Communications Officer, Farmer’s Ethanol LLC [slides]E6 - Biobased Products & Integrated BiorefineriesJim Schreck, Chief Technology Officer, BEST Energies (Chair) [slides]John McKee, Senior Project Manager, Nova Biosource Fuels, Inc. [slides]Bill Faulkner, VP Business Development, Draths Corporation [slides]E7 - Hydrogen, Fuel Cells & Advanced EnginesJeff Serfass, President, National Hydrogen Association (Chair) [slides]Robert Remick, Director, Hydrogen Technologies & Systems Center, National Renewable Energy Laboratory (NREL) [slides]Robert Friedland, President & CEO, Proton Energy Systems, Inc. [slides]David Haberman, President, IF LLC [slides]Sandy Thomas, President, H2Gen Innovations [slides]E8 - Advanced Vehicle TechnologiesPat Cadam, Founder & Owner, Green Gears (Chair)Sanjeev Choudhary, General Manager- PHEV Systems, A123 SystemsTom Mack, President & CEO, AHL-TECH, Inc. [slides]Eddie Sturman, Engineer, Sturman Industries [slides]Todd Suckow, Senior Engineer, Hyundai-Kia America Technical EngineerMike Harrigan, Vice President of Business Development, Coulomb Technologies [slides]Kathryn Clay, Director of Research, Alliance of Automobile Manufacturers [slides]American Council On Renewable EnergyExecutive Summary Report 24

Geothermal PowerOverviewThe United States is currently the world leader inelectricity generated from geothermal power,with 3000 MW installed, and plans for anadditional 3300 MW. World capacity currentlytotals around 10,000 MW from power generatedin over 20 countries. The economic decline hasput extreme pressure on geothermal companiesseeking financing for both project developmentand resource appraisals; however, the economicstimulus bill has provided the industry with newhope. The geothermal session at RETECHreviewed the status and direction of geothermaltechnologies, installed and planned projects,financing, and outlook on the industry.ConsensusThe presenters concurred that although thegeothermal industry will face temporaryeconomic challenges, the technology’s uniquecombination of dependability, costcompetitiveness,scalable potential and zeroemissionssecures its long term success andsupport from governments and the privatesector. New technological developments, suchas Enhanced Geothermal Systems (EGS) anddrilling innovations from the oil and gas sectors,are expected to drive down costs. As a result, anestimated 100 GW of geothermal resource shouldbe available for power generation by 2050.The high capacity factor inherent ingeothermal power production has greatpromise to positively impact both climatechange and energy security– Jeffrey Eckel, President & CEO, Hannon Armstrong CapitalGeothermal TechnologyGeothermal is both a mature and proventechnology, yet it is still underdeveloped.Geothermal provides base-load power andup to a 95% capacity factor. The UnitedStates, although the lead producer ofgeothermal energy, is only accessing a smallportion of its potential.Technological advancements will costeffectivelyderive heat for geothermal powergeneration from greater depths, greatlyexpanding resource potential.The coal and oil industry’s engineering improvements indrilling will drive down the costs of extracting heat frombeyond 3000 meters. In addition, the Department ofEnergy is currently developing the technology base tocreate and sustain commercial-scale EGS reservoirs toaccess vast resources of heat left previously untapped.EGS has the capacity of providing at least 100,000 MW ofelectricity over the next 50 years.Development of low-temperature resourceswould help meet renewable energy demand inthe Gulf Coast region.The Department of Energy is expanding the research anddevelopment of low temperature hydrothermal resourcesand co-produced fluids from oil and gas. This wouldgreatly expand resource potential in several regions of theUnited States with no installed capacity.Geothermal heat pumps are the most efficientway to use green power for carbon free heating,cooling, and water heating.Heat pumps are 400-600% efficient (1 kWh purchasedfrom grid could yield 4-6 kWh for the building) andproduce the lowest carbon dioxide emissions of allavailable space-conditioning technologies.American Council On Renewable EnergyExecutive Summary Report 25

Finance and EconomicsThe geothermal industry has doubled itsworkforce over the past 2 years and willcontinue to increase.Additional tax credits, state RPS demand,natural gas price fluctuation, and slowercoal plant permitting processes will maintainits growth.The economic downturn of late 2008 and 2009has contributed to several market hurdles.In February, shares in geothermal companies were downroughly 56% YTD, causing extreme pressure on theirability to finance developments. Resource verificationcosts, already much higher than other renewable technologies,are impeding project development. However, TheAmerican Recovery and Reinvestment Act (ARRA) hasprovided much hope to the geothermal finance communityfor its Department of Energy loan guarantees and TreasuryDepartment tax grants.PolicyThe American Recovery and Reinvestment Actsupports the continued development ofgeothermal energy.The stimulus bill extends the PTC deadline through 2013and also gives the option to forego the PTC for a 30% ITCthrough 2010. In addition, there is an option to receive acash grant for 30% of the project cost in place of thesetax credits.Renewable Portfolio Standards (RPS) promoteregional demand for geothermal power in theUnited States.Twenty-six states and the District of Columbia recognizegeothermal electric as eligible for RPS. California, Nevada,and Hawaii have a particularly high geothermal potential.Despite challenging economic conditions,public and regulatory support foralternative energy development remainsrobust.– Tracy McKibben, Managing Director, EnvironmentalBanking Strategy, CitigroupConclusionsDespite their acknowledgment that the industrywould experience a temporary low-growth periodduring the economic downturn, the presentersconveyed a positive outlook for the long termgrowth of the geothermal thermal industry. Asthe technology improves, geothermal powerplants will be brought to new regions and thecosts of constructing and operating new plantswill be driven down. Aided by strong governmentand private sector backing, the technology’sshare in global power production will continue toincrease, providing thousands of new jobs andclean, cost-effective power.Session ReferencesC4 - Geothermal PowerPaul Thomsen, Director for Policy and Business Development, Ormat Technologies, Inc. (Chair)Edward James Wall, Geothermal Technologies Program Manager, Department of Energy [slides]Dita Bronicki, CEO, Ormat Technologies, Inc. [slides]Jeff Eckel, President & CEO, Hannon Armstrong Capital [slides]Paul Bony, Director of Residential Market Development, ClimateMaster [slides]Tracy McKibben, Managing Director, Environmental Banking Strategy, Citigroup Global Markets [slides]American Council On Renewable EnergyExecutive Summary Report 26

Green Buildings and CommunitiesOverviewA green building is not only an investment in theenvironment, it is also an investment in futuregenerations. Green buildings use less energy,water, and other resources which will in turnsave money over the lifetime of the building.These buildings facilitate a healthy, safeenvironment in which to work and live. A greencommunity employs a large group of people, andmultiple buildings create a cohesive unit thatdrives conservation, efficiency, and energygeneration from renewable sources. Throughthese buildings and communities, individualscan develop and exemplify green lifestylechoices. It is through a combination of environmentally-consciousbehavior and greeninfrastructure that a truly sustainable world canbe achieved.ConsensusA consensus was reached among the speakersthat children must be taught that the environmentis in grave danger of irreversible damagefrom increasing greenhouse gas emissions,leading to climate change. The younger generationwill only inherit a better world if action istaken now. Therefore, a child’s education mustinclude a deep understanding of energyconservation, energy efficiency, and renewableenergy. Green buildings and communities giveindividuals and groups the opportunity to leadby example.EducationThe United States has a responsibility to providestudents with an education that enables them tobe successful in green careers.The stimulus bill will allocate $122 billionover the next two years to renewable energygrowth and energy efficiency reforms. Of thattotal, $22 billion will go specifically toconstruction bonds for schools. It is imperativethat these funds be used for more than routinemaintenance and new to-code construction. Thefunds should support energy efficiency andconservation measures as well as newrenewable energy systems. Jerome Ringo,President, Apollo Alliance said that, “thestimulus package will not fix this country; it isjust a down payment… We can—and will [solvethe climate crisis]—and the change begins in ourcities… There must now be a level ofaccountability in our cities to invest in greeneducation and employment programs in areasonable and controlled manner.”Education about the environment starts athome.There is much to both learn and teach children about theenvironment, and this education needs to begin at home.There are lifestyle choices that must be addressedbetween the children and their parents, such that thefamily is living in environmentally-friendly home and in asustainable fashion. Community and school developmentis secondary to a sustainable, healthy lifestyle at home.However, that is not to say that green schools are not apriority; in fact, students should be encouraged to bringhome the environmental lessons being taught at school—things such as starting a compost pile or changing tolighting with compact fluorescent bulbs.Awareness about environmental and energyissues needs to be ubiquitous.American Council On Renewable EnergyExecutive Summary Report 27

We can and will [solve the climate crisis]and it begins in our cities.– Jerome Ringo, President, Apollo AllianceJerome Ringo cited the failure of local and nationalleadership to raise awareness about energy issues. Howto increase popular awareness of the importance of cleanenergy and energy efficiency is one of the biggest challengesAmerica faces.The damaging effects of global warming are often feltmost by the poorest communities, whose voices in theenvironmental movement are rarely heard. The UnitedStates has the opportunity to engage low income communitiesby training people from all walks of life for jobsbettering their environment.The poor are deeply affected by negativeenvironmental factors, and have significantlyless power to combat these changes.The poor are more occupied with daily life and theirimmediate future than wealthier Americans. They haveless money to invest in alternative energy, and mustspend 50% of their disposable income on fossil fuelgeneratedenergy. A disproportionate number ofimpoverished students are affected by infrastructureinefficiency and degradation at their schools and homes,as there are drastically more health issues—like a higherpercentage of children with asthma, or dangerous levelsof lead in children’s bloodstreams—in older anddilapidated buildings.The stimulus bill presents an once-in-a-lifetimeopportunity for energy and the environment tobe placed in the forefront of the Americaneducation system.Now that the American Recovery and Reinvestment Act of2009 has been passed and signed into law, there is aunique chance for educators and administrators to settheir agendas, curricula, and plans around renewableenergy and energy efficiency. This is the time for schoolsto create holistic and grand strategies to greatly reducetheir carbon footprints and greenhouse gas emissions.Teachers need to be well-versed and confidentin leading environmental education lessons, andneed to exude a green lifestyle themselves.The administrators of a green school should look toemploy teachers of all subjects who have studied or havea background in environmental science, sustainability, orgreen design. The school can provide training for teachersin specific “green” areas, or in particular lessons thatthey may not be familiar with. Teachers andadministrators should also understand the green featuresof their school.Green BuildingsBuildings should look to other forms of energygeneration, such as distributed generation andon-site generation from renewable sources.Agreen building can greatly decrease itsenergy usage from fossil fuels with theadoption of energy generation from solar, wind,or geothermal resources on site. By havingdistributed combined-heat-and-powergeneration systems installed, buildings cangreatly increase their efficiency.There are real barriers to entering the greenbuildings arena, so the process to receive siting,zoning, and planning permits needs to be madeeasier.The federal government has a real obligation to facilitatethe requests of, and issuing of permits on green buildingprojects. There are real challenges that have to be facedin the process of installing new energy generationsystems, including net metering limitations, third-partyownership of renewable energy generation equipment,and interconnection fees to the electric grid.The planners and designers of a green school,or any green building, should know their assetsand try to utilize their natural resources.In the case of the University of Minnesota-Morris, therewas huge wind potential in the western part of the stateas well as agricultural waste that the school began buyingand using in a biomass gasification generator. Theuniversity also put up a large, 1.65 MW wind turbine andis about to begin construction on another turbine ofsimilar size. Minnesota-Morris was able to utilize theirlocal resources to maximize the amount of renewableenergy on their campus.American Council On Renewable EnergyExecutive Summary Report 28

Green construction and renovation should beviewed as a life-cycle cost rather than an initialupfront cost.Nearly all of the energy and monetary savings from agreen building will be accumulated as the facilitymatures. The assumption that a green building will have ahigher upfront cost is generally true, yet usually this costis not significantly greater. Nonetheless, the initial costsof a green building may be more expensive than a schoolbuilt to code, but added expenses will be paid off throughconservation, efficiency, and renewables—not just once,but many times over—during the lifetime of the building.Efficient use of energy in buildings is one of themost effective ways to drastically reducegreenhouse gas emissions.Mary Tucker, Energy Program Manager, City of San Jose,California spoke about the city’s use of green goals toboth reduce greenhouse gas emissions and stimulate thelocal economy. Green buildings play a large role incurbing municipal emissions and can be responsible for a60% reduction in carbon emissions. Energy efficiencyprograms in city buildings spell huge monetary savings forcities, with projects at sixteen San Jose buildingsexpected to save $435,000 in general fund energy costs.Green SchoolsAttendees shared a vision that every studentattend a green school within one generation.Roughly 20% of the American population,including students, teachers, andadministrators, go to school every day, so thereis huge potential to affect millions of lives withgreen schools. By the time that today’s childrenare sending their children to school, a greenschool should be the standard building practice.A green school in operation saves energy and money.Over the course of a year, a typical new green school willuse only 2/3 of the energy that a school built to today’scode would use. An average green school will also savearound $100,000 per year in operations comparison toan ordinary school. This savings means that greenschools would have the available funding to hire a fewnew, well-qualified teachers each year.Every state should mandate green school requirements.There are currently 10 states that have instituted someform of green building regulations for new schoolconstruction, and/or for existing school renovations.Another 17 states are in the process of passing similarrequirements. The United States’ Green Building Council(USGBC) encourages a goal for all 50 states to pass andimplement green school legislation. On Capitol Hill, thegreen schools caucus is one of the fastest growingfederal movements.A concerted effort on the state level can lead tobold and influential green school policy.State governments will play an important role in theexpansion and pervasiveness of green schools. Forexample, Ohio has made a commitment to build 205green schools over the next two years. Studies estimatethat these schools will save the state $1.4 billionannually on energy consumption, and nearly 1/3 of allnew school construction costs will be recouped. Fromthese savings, the state can pay for the salaries of newschool staff. As another benefit, it has been shown thatthe retention rate among teachers in green schools ishigher than in other, traditional schools.A green school should be an interactive buildingand encourage a hands-on learning experience.Of equal importance to constructing a green school islabeling the special design features of the school.Labeling facilitates class lessons on these features,integrating seamlessly with the students’ education. Forexample, features such as reclaimed and reused woodfrom an old factory should have appropriate signage forstudents to read, or there should be diagrams explaininghow the low-flush toilets in the bathrooms work.Lastly, students should have access to the data from anon-site renewable energy installation. There could be, forexample, touch-screen equipment in a public area of theschool (i.e. the library or main foyer), which displays theoutput from the solar photovoltaic array on the roof.If both the public and private sector decided toprioritize and incentivize the building of greenschools, green schools would proliferate.One of the largest factors in the proliferation of greenschools is the reception of assistance from the utilitycompanies. It would be very beneficial to the green schoolmovement if utilities could alleviate some of the operationalcosts from green schools’ renewable energyAmerican Council On Renewable EnergyExecutive Summary Report 29

systems, agree to buy green power during the summerwhen the schools are not using it, and place price guaranteeson the electricity that a green school consumes—especially the electricity it produces. If federal incentivesor rebates were linked directly to green schools, thatwould make green school construction and renovationeven more affordable.TransportationA green school is not complete without greeningthe transportation to and from school—and thatstarts with the buses.The United States has a fleet of 60,000school buses, and for every bus on theroad, 30 cars are eliminated. While the newestschool buses can achieve 7 mpg, if we factor inthe number of passengers ferried, the fuelefficiency improves to 252 mpg. Considered inthis light, buses can be seen to be a highlyefficient and effective mode of transportation.In addition, half of the new buses have a specialidling shut-off which cuts out 50% of their fuelconsumption. In fact, new technology allows fordiesel buses to have lower emissions and to runcleaner than traditional gasoline-powered cars.Drivers and maintenance workers must betrained properly and be aware of the school’smission to have a cleaner, greener schoolbus fleet.Green schools should provide training to school busdrivers and maintenance workers to reduce bus idlingwhen possible, check tire pressure, and to start and stopbusses efficiently. The EPA runs a comprehensive GreenSchool Bus Program and all schools are encouraged to join.money. Further, renewable energy industriescreate roughly triple the number of good jobs —paying at least $16 dollars an hour —as the oilindustry could create with the same amount ofmoney.Green jobs will revitalize the American economyand substantially curb the rising unemploymentrates.Green jobs have the potential to reduce the unemploymentrate to 4.4 percent, from 5.7 percent (calculatedwithin the framework of US labor market conditions inJuly 2008). Green job training would bolster employment,especially in domestic construction and manufacturing.Specifically, the Green Recovery program can, at least,bring back 800,000 construction and skilled labor jobs.ConclusionsWith 40 percent of all energy consumed in theUnited States being consumed by buildings,there is substantial room for improvement inconservation and efficiency across the Americaninfrastructure. Building renovations andmodifications can significantly reduce totalenergy usage and greenhouse gas emissions. Astandard for new construction of green buildingsand communities would ensure that futurebuildings will be more environmentally-friendlyand sustainable. These conservation andefficiency measures would breed the adoptionof environmental awareness and green lifestylechoices, and coupled with increased renewableenergy production, could easily make a bettertomorrow for the next generation.Green JobsRenewable energy industries create more jobsthan the oil industry does.Renewable energy industries can createnearly four times more total jobs than theoil industry can create with the same amount ofAmerican Council On Renewable EnergyExecutive Summary Report 30

Session ReferencesGreen Schools BreakfastJerome Ringo, President, Apollo AllianceLowell Rasmussen, Vice Chancellor, University of Minnesota-MorrisRachel Gutter, Senior Manager, Education Sector, U.S. Green Building Council (USGBC)Rich Costello, President, Acela EnergyBrett KenCairn, Executive Director, Veterans Green JobsSteven Pucke, First Group TransitWilliam Naubert, President, Project EverGreen SchoolsJ. Paul Gerner, Associate Superintendent of Utilities, Clark County School District, NevadaMel Jones, CEO, Sterling PlanetF2 – Green SchoolsRachel Gutter, Sr. Manager, Education Sector, U.S. Green Building Council (Chair) [slides]Paul Polizzotto, CEO, EcoMedia [slides]Gary Westerholm, Executive Advisor, Project Evergreen Schools [slides]Paul Gerner, Associate Superintendent of Utilities, Clark County School District, Las Vegas, Nevada [slides]F3 – Green CitiesChristine Ervin, President, Christine Ervin Company (Chair)Mary Tucker, Energy Program Manager, City of San Jose [slides]Lowell Rasmussen, Vice Chancellor, University of Minnesota Morris [slides]Jerome Ringo, President, Apollo AllianceF4 – Green CompaniesMatt Clouse, Director, Renewable Energy Policy and Programs, US Environmental Protection Agency (Chair)Roger Ballentine, President, Green StrategiesJeff Krech, Global Facilities Global Sustainability Program Manager, Dell Inc. [slides]Michelle Price, Base Energy Manager, 99 CES/CEAO, US Air Force[slides]Marty Sedler, Director, Global Utilities and Infrastructure, Intel Corporation [slides]Andrew Singer, Senior Vice President, Constellation NewEnergy [slides]F7 - Green BuildingsCurtis Clark, Sustainability & Energy Consultant, GSBS Architects (Chair) [slides]Ralph DiNola, Principal, Green Building Services, Inc. [slides]Shelley Fidler, Principal, Governmental Affairs, Energy & Environmental Policy, VanNess Feldman [slides]Elizabeth Francis, Partner, Mario Cucinella ArchitectsDeb Kuo, Director, Real Estate, Exelon Corporation [slides]Kevin Hydes, CEO, Integral and Past Chair, World Green Building Council [slides]F8 – Green (DREAM) JobsCheri Olf, Director of Education and International Workforce, American Council On Renewable Energy (ACORE) (Chair)Brett KenCairn, Executive Director, Veterans Green JobsDawn Dzurilla, President, Gaia Human Capital ConsultantsAmerican Council On Renewable EnergyExecutive Summary Report 31

Hydro/Ocean/Tidal/Offshore Wind PowerOverviewHarnessed water power is one of the world’soldest renewable energy sources. Hydropoweraccounts for more capacity than any otherrenewable source today. At RETECH 2009, hydroinnovators presented on the changing manner inwhich developers are harnessing the power ofwater—and offshore wind. As technology opensnew areas to offshore development, nationalleaders in ocean, wave, tidal energy, andoffshore wind convened in Las Vegas to discussthe field’s successes, challenges and visionslooking forward.ConsensusNew technologies are bringing changes tooffshore energy generation, with innovatorsrising to the challenge of providing clean energyto America’s growing coastal cities. With minimalenvironmental impact, developers are findingnew ways to harness water’s abundant kineticpotential—and changing the way the world thinksabout hydroelectric power.Offshore Wind EnergyThe benefits of offshore wind energy arenumerous.Burton Hamner, President of Grays HarborOcean Energy Co. LLC, described the benefits ofoffshore compared with traditional landturbines. To start, offshore turbines enjoy areduced load turbulence blowing at a highermean rate on a steadier basis and mitigatingsome of the intermittency issues of traditionalwind. Offshore wind is also more aestheticallybenign. Commonly located about ten miles fromshore, turbines present a small visual impactand no bird impacts. With good siting optionsoffshore from high volume load centers,offshore wind enjoys increased transmissionoptions compared to traditional wind that rely onheavily loaded lines. Lastly, offshore wind farmsavoid constraints on turbine size—larger turbinescan be more economical to use, generatingmore power and but not easily transportableby land.Offshore turbines enjoy a reduced loadturbulence blowing at a higher mean rateon a steadier basis and mitigating some ofthe intermittency issues of traditional wind.– Burton Hamner, President of Grays Harbor OceanEnergy Co. LLCThere is a list of eight criteria for developingoffshore wind and wave farms.Burt Hamner also offered eight criteria forevaluating a site’s feasibility for offshore wind:American Council On Renewable EnergyExecutive Summary Report 32

1. The local electric power market must be in thetop quartile of electricity costs in the USA,averaging less than 15 cents/kW.2. The state must have significant incentives andrequirements for renewable power generation.3. The local grid and load are adequate to absorb1000MW of power and to balance it when thewind/wave energy drops off.4. The site must have at least 100 square milesof area to develop.5. A suitable harbor and construction site andclear access are available.6. The inner side of the site must be at least 10miles offshore to maximize wave and windpower and minimize visual impacts.7. The site must not be in a commercial shippingnavigation lane.8. The site depth must not exceed 250 feet.With these eight criteria in mind, there are sevensites off America’s coastlines that fit the bill:1. MA—south of Nantucket2. RI—south of Block Isle3. NY—Hamptons; south of Long Island4. NJ—off Atlantic City5. CA—off Farallon Islands6. CA—off Ventura7. HI—off Moloka’iiProposals have also been submitted in locations along theTexas Gulf Coast, locations in the Great Lakes, and theAlaskan Peninsula.Of course, as with other renewable energytechnologies, offshore wind faces challenges,such as siting and positioning.The United States’ continental shelf slopes deeper morequickly than the one in Europe, limiting the number offeasible sites with sufficient wind capacity and proximity toload. Further technological improvements are necessaryto open more area to development.In addition, the Jones Act restricts use of foreign vessels ininstallation process, so European boats designed forturbine installation can’t be used.The logistics of building and erecting offshorewind turbines present some complexengineering challenges, and the projects may beeven more difficult off the American coastlinethan it would be off the European coastline.Offshore wind turbine foundations vary in size andfoundation type. With water under 30 meters deep, amonopole design is used, anchoring the turbine to theseabed with a single pillar. This design has been used formost existing projects in Europe’s shallow continentalshelf, but proves difficult off the deeper, more turbulentNorth American Continental Shelf.Between 30 and 60 meters of water, demonstrationphase designs are typically ‘jacket tower’ or ‘jack-up’platforms, where turbines are affixed to a floating tripodonshore, then towed to the site, attached to pillarsanchored in the seabed and ‘jacked up’ above the waves.This medium-depth design requires no special ships andavoids the lengthy and costly installations characteristic ofa single-platform design.Above 60 meters, ‘floating spar’ or ‘tension leg’ platformsmight be used to anchor the turbine, allowing it to drift abit with the deeper, more powerful currents. With theseadvances in anchoring technology, sites previously out ofthe realm of possibility for US offshore wind have becomenew options for wind farms.There is potential to combine the technologiesof offshore wind and wave energy into onegeneration system.With good wind and wave potential, the western UnitedStates holds promise for joint wind-wave ventures, withsome designs incorporating wave power into turbineplatforms. There are man designs for independent wavefarms encompassing buoy farms that capture the rise andfall of waves, to long, tubular floats that capture thewater’s longer periodic motion. These technologiesaren’t as far along in the development stage as turbines,but should help to moderate fluctuations inoffshore wind velocity.American Council On Renewable EnergyExecutive Summary Report 33

New Water TechnologyThere are opportunities to improve existingwater technology as well as the invention of newtechnology.Opportunities exist to harness moving waterin rivers and estuaries, as exhibited atRETECH by New York’s Verdant Power andSeaGen from the United Kingdom. Usingunderwater rotors, these companies harnesswater’s density to spin underwater rotors,generating electricity. With their pilot farmlocated in New York City’s East River betweenRoosevelt Island and Brooklyn, Verdant Powerutilizes a three-blade turbine design, anchoredby cable to the riverbed. Since the riverreverses its flow during the day, the turbine’sdesign allows it to easily pivot 180° andcontinue functioning.SeaGen, a project of Marine Current TurbinesLtd, was installed in a channel in StrangfordNarrows, Northern Ireland, using a platformdesign, resembling something of an in-sealighthouse. SeaGen incorporates two large, twobladeturbines that extend from arms on eitherside of the platform. The platform rises andlowers to best harness the tidal current, and canraise the rotors above water to performmaintenance. The next frontier is open-seaunderwater turbines, with submerged floatingdesigns that utilize the kinetic power ofdeepwater currents.underwater kinetic turbine to capture high-velocitycurrent from the dam’s tailrace, adding 5.7% of renewableenergy generation to the existing site. MakingAmerica’s existing dams more efficient without inhibitingany more waterways or adding substantial amounts ofadditional transmission is what makes this add-onso alluring.ConclusionsStill one of the most abundant renewable energysources, hydropower’s next century promises tolook much different than its last. From offshorewind to innovative underwater approaches, theworld is just beginning to unlock the kineticforce of water and the new opportunitiesanchoring technologies provide. At RETECH2009, the hydropower delegation showed therenewable energy world it’s serious about lowimpact, high yield and efficient transmission.Session ReferencesC5 - Hydropower and Ocean PowerTrey Taylor, President, Verdant Power (Chair) [slides]Burt Hamner, President, Grays Harbor OceanEnergy Co. LLC [slides]Peter Fraenkel,Technical Director, Marine CurrentTurbines Ltd. [slides]Wayne Krouse, Chairman & CEO, Hydro GreenBoth engineers and entrepreneurs alike arerevisiting the standard hydroelectric dam.CEO Wayne Krouse of Hydro Green Energy wants tomake America’s dams work a little harder, retrofittingthem to generate hydrokinetic energy. Of the thousandsof dams in the continental United States, he figures that60% to 2/3 of them are compatible for a modificationthe company performed on Hastings Dam, over theMississippi River in Minnesota. The company uses anAmerican Council On Renewable EnergyExecutive Summary Report 34

International Renewable Energy Industryand MarketOverviewSpeakers presented an overview of the state ofthe renewable energy industry around the world,including a breakdown of the top players andtheir locations. Also included was an analysis ofthe industry’s major trends, as well as a forecastof renewable energy’s growth within the contextof worldwide economic downturn.ConsensusThis year is a pivotal point in the history of theglobal renewable energy industry. Europeancountries, such as Germany, Denmark, theUnited Kingdom, and Spain have demonstratedthe viability and success of solar and windpower with advanced economic policies, largescalemanufacturing, and a continuallyincreasing capacity of on and offshorerenewable energy generation systems over thelast decade. The new international players,China and India, have nearly insatiable energydemands that can be met in two ways: 1) underthe ‘business as usual’ model using petroleumand coal; or 2) with an innovative strategy thatemphasizes energy production from renewablesources. While China and India have taken stepstowards the latter option, they have takenequally as many steps towards the former. Thereis no certainty that their massive needs can besustained through renewable energy generation.It is here, at this crossroads, that the UnitedStates must step in and demonstrate globalleadership with its own renewable energygeneration. The US has the ability to greatlyramp up the development, manufacturing, andlegislation of renewable energy and tosignificantly increase the percentage ofrenewables in its national energy load, whichcould serve as an example to China and India,as well as to the rest of the world.United KingdomThe United Kingdom has enormous windpower potential— especially in offshoreprojects, where the UK has the largestcapacity for wind in the world.According to Mike Rosenfeld of UK Trade andInvestment, the United Kingdom has over2,500 MW installed onshore wind power projects,with 400 MW installed in 2008, and 300 MWinstalled so far in 2009. There is an extensivepipeline of projects in development: 1,060 MWunder construction, 3,159 MW have beenproposed and consented, and 6,890 MW are inplanning. Delays in the planning system and gridcapacity are being addressed, but, in someinstances, project financing could be an obstacle.The next phase of offshore wind development in the UK,proposes a total installed capacity of 25 GW. Funding willbe allocated in 2009, and the projects should be operationalin 2015, with a £50 billion investment opportunity.Currently, 7 offshore wind projects are in operation with acapacity of 404 MW and 8 projects are under constructionwith potential capacity of additional 936 MW, whileanother 3,113 MW of capacity have been consented.The UK’s potential electricity generation isgreater than its potential electricity demand.Rosenfeld also commented that there is an obligation onelectricity suppliers for a growing percentage of theirelectricity to from renewable energy sources. This level willrise to up to 20% by 2020, and the obligation runs toAmerican Council On Renewable EnergyExecutive Summary Report 35

2037. Accredited Renewables Generators earn RenewableObligation Certificates for each MWh generated, thecertificates which can be traded. Suppliers must have thenecessary number of certificates at the year end, or elsepay a buy out fee (~£35.76/MWh). Buy out fees arerecycled to suppliers who have met their obligation,therefore increasing the ROC’s value. Generators cansecure medium term contracts for supply of power, ROC’s,and other benefits. An excess of electricity would meanthat the UK can consider exporting some of energy toother parts of the European Union.The United Kingdom stands at theforefront of renewable energy marketdevelopment. The UK governmentrecognizes that the most efficient way tomeet its goals is to establish an openmarket system with a free market pricingmechanism.– Mike Rosenfeld, Vice Consul, UK Trade and InvestGermanyGermany has set ambitious targets for 2020.Juergen Morhard of the German Embassyrelated that the targets for 2020 include 40%less greenhouse gas (GHG) emissions (270 m.tons), a 30% share of renewable energy inelectricity (compared to 15.3% in 2008), a 14%share of renewable energy in heating, doublingof energy efficiency, and doubling of cogeneration(CHP). Germany’s Integrated Climateand Energy Policy (ICEP) has goals of climateprotection, energy security, economic growth,employment opportunities, and industrialinnovation. One of the major goals of the ICEP isa total annual reduction of 270 million metrictons CO2 by 2020.The keys to success of Germany’s RenewableEnergy Sources Act rely on a few factors.Morhard also told RETECH attendees thesuccess of the Renewable Energy Sources Actrests on the following principles:• Reliability - long term planning security forinvestors• Innovation - technology-specific incentivescreate lead markets• Flexibility - adapts to technological andmarket developmentThere needs to be a specific but simple approach for bothprivate households and businesses; grid operators have tofeed in electricity from renewable energy sources and givepriority to transmission and distribution of RE; priceguarantee should be valid for 20 years; the total costs ofthe EEG for tax payers would be €4,4 billion, so thatfamilies pay less than €3/month, and private householdspay 1 cent/kWh per month.Germany is a world leader in renewables.According to David Wortmann of Germany Trade andInvestment, Germany had the largest sales worldwide ofphotovoltaic cells and wind turbines, and Germanyoccupied a 10% share of the global renewables market in2007. During the same year in the labor market, therewere 249,300 Germans employed domestically in therenewable energy industry. Germany had €10,7 billion ofdomestic investments in renewables during 2007 inaddition to exporting €9 billion of renewable energysystem products. Total sales in Germany for 2007 equaled€25 billion.Germany is one of the world’s largest PV market, with aturnover of €7 billion in 2008. In 2007, Germany held a47% share of the world PV market. While in 2008,Germany’s total installed PV power was 5.3 GW, newlyinstalled PV power was 1,500 MW, PV industry turnoverwas €7 billion, and the number of employees in PVindustry was 48,000.The Germans also have a well developed wind energymarket. In 2007, Germany held a 24% share of the worldwind market. Newly consented wind projects in Germanyprofit by a broad and steady domestic market and excellentexport conditions. Wind power accounted 7% ofelectricity consumption in Germany during 2008. Datafrom 2007 show that the total number of installed windturbines in Germany was 22,247 MW; the number ofGerman employees working domestically in the windindustry was 85,000; the share of worldwide turbineAmerican Council On Renewable EnergyExecutive Summary Report 36

production was 37%; the domestic turnover was €5.6billion and export turnover was €7.5 billion. In Germany,26 offshore wind projects with a capacity of greater than25 GW have been approved, and another 19 projects arecurrently pending approval. There is now space forhundreds of small wind developers, which opens themarket for new and bigger players. Capacity shortages inseveral areas offer significant business opportunities.ChinaOver the next twenty years, China will need tofind an alternative to coal-fired power generationin order to meet its expanding national energyconsumption.According to Louis Schwartz of China Strategies,LLC, between 2005 and 2030, China will bespending $1.2 trillion US on electrical powerinvestments. In 2006, power generated fromcoal accounted for 69% of total energy consumptionin China; by 2050, coal-fired powerplants will account for 30% to 50% of China’senergy needs. In 2006 alone, China added anadditional 92,000 MW of coal-fired powerplants. In 2007, 11,000 MW of the worst coalfiredpower plants were closed. In 2008, another13,000 MW of outdated capacity will be closed.China is choosing renewable energy foreconomic, social, and environmental reasons.Between 2005 and 2030, China willaccount for 23 percent of the world’sinvestment in electrical power. Renewableenergy will help to curb greenhouse gasemissions, increase energy security, andprovide sustainable distributed generationoptions to those 10 million Chinese whodo not have access to electrical power.– Louis Schwartz, President, China Strategies, LLCInvestments, research, and development of renewableenergy offer opportunities to alleviate degradation of theenvironment, meet growing demands for energy, implementenergy security, and enhance economic developmentin rural areas. Beijing plans to invest approximately$263 billion US through 2020 to foster the developmentof China’s renewable energy resources. Officials areprojecting that China can generate 16% of their totalenergy load from renewables by 2020. By 2020, there willbe 300,000 MW of hydropower, 30,000 MW of windpower, 30,000 MW of bio-mass, 1800 MW of solar power,300 million sq. meters coverage of solar hot waterheaters, 20 million tpy of bio-fuels and 44 billion sq.meters of methane gas.Many Chinese have little or no access to power.Schwartz reported there are more than 10 million Chinesewho do not have access to electric power and tens ofmillions more rural Chinese with only spotty access. Tocombat this lack of electrification, Beijing has specificgoals for rural power development, including strengtheningthe construction of small-scale rural hydropower plantsand power grids, local wind power, biomass and solarprojects. By 2010, Beijing plans to have in place 300,000small-scale wind turbines in rural areas of China, to have40 million households using methane gas, 50 millionsquare meters of solar-powered hot water heaters and 1million solar-powered stoves in use.China’s growing middle class has generated anunparalleled demand for energy.Between 2005 and 2030, China will account for 23percent of the world’s investment in electrical power.Renewable energy will help to curb greenhouse gasemissions, increase energy security, and provide sustainabledistributed generation options to those 10 millionChinese who do not have access to electrical power.“New” energy equated to roughly 9% of the energy mix in2008.One of the most important aspects of China’simminent growth rests on the expansion andimprovement of its national grid system over thenext few years.China’s existing power grid, the largest power network inthe world, is the one of the biggest hindrances to furtherdevelopment. The smart grid remains an emergingconcept. However, the outlook is positive; in China’sstimulus package of $585 billion, China’s state gridcorporation will invest $170 billion in new grid construction.American Council On Renewable EnergyExecutive Summary Report 37

Grid resistance in China cannot be decreed;better incentives are needed.Sebastian Meyer of Azure International stated that there isa stability challenge for high penetration areas. A renewableenergy surcharge mechanism creates a workingcapital drain, a slow refund mechanism. It appears thatexcept where local grid companies have stakes in windprojects, generally they do not benefit from increasedrenewable energy penetration under the existing system.The Chinese have taken some administrative measures toattempt to address and improve the situation. The gridcompanies have also responded with interconnectionagreements, but these agreements often place therenewable energy developers at risk.Wind power has a huge capacity potential inChina, and the Chinese are starting to act.Schwartz presented that China has an estimated 1 millionMW of land-based wind resources, and another 200,000to 700,000 MW of close-in off-shore wind resources.China now has the fourth (surpassing India) largestinstalled base of wind power in the world. By 2015,China’s installed base of wind power will be the world’slargest. Beginning in 2009, China will be adding new windpower capacity at the rate of 7,000-10,000 MW/year. By2008, China’s wind power capacity exceeded 12,000 MW,an amount originally expected to be accomplished after2010. As recently as 2007, the goal for 2020 was 30,000MW of installed capacity. As of 2009, wind power accountsfor 1.3% of China’s total energy output. In 2006(the year the Renewable Energy Law took effect), windpower accounted for 1/1000th of total power productionin China. Prior to the financial crisis, China had planned tospend $28 billion US on wind power capacity developmentbetween 2006 and 2020. A sizable portion of China’s$586 billion US stimulus package will include renewableenergy projects. In the 4th quarter of 2008, $14-15 billionUS was spent on renewable energy development.Like other renewable energy developmentaround the world, wind resources in China andtheir subsequent development is regional.The following five provinces account for 69.4% of totalinstalled wind capacity in China: Inner Mongolia, Liaoning,Hebei, Jilin and Heilongjiang. In the next five years,eastern China’s coastal regions, northwest China, northeastChina and eastern China cumulatively will build 30 ormore 100 MW class wind projects and will create six10,000 MW ‘bases’ in Gansu, Xinjiang, Western InnerMongolia, Eastern Inner Mongolia, Jiangsu and Hebei. TheShanghai East Bridge Off-Shore Wind Power Project—-China’s first offshore wind farm—is now under construction.Domestic manufacturing of wind turbines andparts in China is growing quickly.Chinese wind turbine manufacturers are now producing1.5 MW, 2 MW and even 3 MW turbines, said Schwartz.Factors contributing to growth in Chinese wind turbinemanufacturing include growth in the pace of constructionof new wind farms, requirements that 70% of wind powerequipment be sourced domestically, the elimination of taxrebates on purchases of domestically produced equipmentby foreign invested enterprises, and the eliminationof duty free imports of wind turbines of 2.5MW or less.There has been a rapid increase in the number andcapabilities of China’s indigenous wind turbine partsindustry. There are now more than 50 companies producinggearboxes, generators, and blades.Schwartz added that China remains dependent onimports for such key wind turbine components as precisionbearings, electrical and control systems, and inverters.US companies such as American SuperconductorCorp. (AMSC) have been very successful in supplying theChinese wind turbine industry. To facilitate the import ofcomponents not manufactured widely in China, theMinistry of Finance instituted a program of rebates oftariffs and VAT taxes. As more wind turbines and theircomponent parts are sourced domestically, the Chineseare driving down the cost of wind power. Presently windpower costs ~0.5-0.6 Yuan/kwh compared to ~0.2-0.3Yuan/kWh for power from coal-fired power plants. TheChinese estimate that if 70% of wind turbines are manufactureddomestically, the cost of wind turbines willdecline by ~15% and the cost of wind power woulddecrease to 0.375 Yuan/kWh.The government is at the forefront of the growthof wind power in China and it is through Beijing’sefforts that success will be attained.Schwartz believes the Chinese government has been veryadept at creating the conditions for the development ofparticular industries by setting goals, putting in placelaws, regulations and policies, creating incentives,nurturing key enterprises, convening government agenciesand enterprises to develop plans, while allowing marketforces to flourish. Beijing’s nurturing of the wind powerindustry displays all of these policies.American Council On Renewable EnergyExecutive Summary Report 38

There have been a number of incentives implemented totrigger the growth of the wind industry in China. In 2001,Beijing reduced the value-added taxes due on the productionof wind power by one-half. Between October 2007 andJune 2008, the Chinese government provided approximately1.4 billion Yuan (~$206 million US dollars) infinancial subsidies for the wind industry. Financial subsidiesinclude a 600 Yuan/kW payment to domestic windturbine and component manufacturers for the first 50MW-class wind turbines that domestic wind turbinemanufacturers produce. The Chinese government issupporting the construction of power grids that connectfar flung centers of wind power production with populationcenters and energy consumption hotspots. Industrialpolicy, including the use of the “special permitting”process to select investors in wind farm developmentprojects and the utilization of domestically producedequipment for the construction and operation of thosewind farms has been a significant impetus to developmentof the wind industry in China. Beijing also has incentivizedwind farm development through the requirement thatpower generating companies have an installed capacity of5000 MW or more. A Renewable Portfolio Standardrequires that power companies must produce at least 3%renewable energy by 2010 and 8% by 2020, excludinglarge hydropower sources.The gaps in China’s plan to fully develop itsemerging wind sector still need to be addressed,including the pricing of wind power anddevelopment of power grids.Schwartz continued that trial measures for renewableenergy power generation pricing and cost sharing werepromulgated by the National Development and ReformCommission in 2006 to provide for the on-grid price ofwind power to be determined by the administrativedepartment of the State Council in Charge of Pricing,based on local conditions, and in accordance with thegeneral principal of cost plus profit margins. Power pricingfor wind power “special permitting” projects are to bedetermined by bid, but are not to exceed the level set bythe administrative department of the State Council inCharge of Pricing. Development of power grids to serve thewind farm installations being constructed is lagging,causing difficulties in connecting and distributing powergenerated from wind farms. This, in turn, results inwasted energy.So while some measures to govern purchases by powergrid companies were enacted in August 2007 to provide amarket for renewable energy, the lack of a fully developedgrid makes that promise somewhat illusory. In 2007, forexample, the State Power Grid Co. distributed only 1/10th(5 billion KWh) of the maximum potential of total KWhsthat China’s wind farms were able to produce. Thetechnological level of domestic wind turbine manufacturersstill needs to be improved and the quality of some ofthe domestic wind turbine components is not high.China is very adept at using tax policy tomeet its goals.– Louis Schwartz, President, China Strategies, LLCIndiaLike China, India has rapidly growingenergy demands.Today, approximately 147,402 MW of electricpower capacity (including nearly 30,000MW of captive generation) is generated in India,including 13,242 MW of renewable power. Thispower capacity also consists of 93,392 MW ofthermal power, 36,647 MW of hydroelectric and4,120 MW of nuclear power. However, largerhydropower is scored/counted outside of therenewable power figures.The 11 th 5-Year Plan (2008-2013) initially required 77,778MW of new electric power to be built, including 10,000MW of renewable power. The government of India hasincreased that new capacity figure to 100,000 MWrequired in the11th 5-year Plan. In the 10 th 5-Year Plan,India built 24,000 MW of its required 34,000 MW ofelectric power. The Indian government has stated that the11 th 5-Year Plan for infrastructure, including power, wouldrequire approximately $492 Billion U.S. (of which approximately$240 Billion U.S. would represent debt, and $140Billion U.S. of this debt will come from the private sector).The Indian power sector received investments worth$44.76 billion U.S. in the first half of 2008.India is working to build up its installed capacityof wind and solar power in the coming years.India’s installed capacity for wind power is approximately9,600 MW with the potential for approximately 45,000MW. Purchasers can buy wind machines of 500 KW toAmerican Council On Renewable EnergyExecutive Summary Report 39

1000 KW off the shelf in India. The Indian Ministry of New& Renewable Energy (MNRE) will provide a new windincentive of Rs. 0.50 (U.S. 1 cent) per kWh up to the first49 MW of overall new production with the expectation toraise the cap significantly over time to further encourageadditional new construction.India also has commenced a major solar power initiative.It is encouraging the installation of solar photovoltaictechnology systems for the generation of electricity andsolar thermal technology for the production and capture ofheat. Solar thermal power plants are expected to beconstructed in the near future. Solar PV panels are beinginstalled on rooftops as thin sheets plugged into householdwiring systems. Recently, the Maharashtra EnergyDevelopment Agency received proposals for 25 MW ofsolar photovoltaic and solar thermal electricity generation.Nagpur is slated to be India’s first “solar city.”Biomass and biofuel production are nascentindustries in India, entirely based in the privatesector, and present tremendous upsidepotential.India has a new biofuels policy with an emphasis onbiodiesel production from Jatropha. The biodiesel marketis targeted to be at nearly $32 billion in installed projectsby 2017. Indian Railways has floated a tender invitingproposal for setting up four biodiesel methyl esterificationplants for 20 years, targeting a capacity of 50,000 liters ofbiodiesel from each unit per day. Today, approximately100 million gallons per year of biodiesel capacity (versusnearly 2.61 billion gallons per year current capacity in theUS) and 767 million gallons per year of fuel ethanolcapacity (versus approximately 13 billion gallons per yearcapacity in the US by the end of 2009) exist in India. Onlast available information, by December 31, 2007, India’sfuel ethanol capacity was projected to be in a range of1.3-1.6 billion gallons per year. Similarly, biodieselcapacity was projected to be more than 150 milliongallons per year at the end of 2007.Since early 2000, the government of India has repeatedlyset fuel ethanol-blend mandates on a regional basis forpetrol. However, the government has not carried out themandates in any dedicated manner. As of November 1,2007, the government had mandated fuel-ethanolblending in petrol nationwide at 5%, and mandatory. As ofOctober 1, 2008, the mandatory blend percentage wasincreased to 10%. However, the government recentlydelayed implementing this mandate nationwide and,instead, established pilot programs at that blend percentagesin two districts in the States of Karnataka and UttarPradesh. The government intends a further increase ofthis blend mandate to 20% by 2017. The government doesnot have a similar mandate for biodiesel. Nevertheless, ithas considered a mandated biodiesel blend range of 5%to 20% in diesel fuel.Developing CountriesRural electrification is not only an energy issue,it is an education, health, environmental, social,humanitarian, economic, agricultural,communication, and water issue as well.The Alliance for Rural Electrification reportedthat 1.6 billion people worldwide—morethan one-quarter of the world’s population—donot have access to electricity in their homes.Four out of five people without electricity live inrural areas of the developing world. A totalcapital investment of $8.1 trillion US, equivalentto an average of $300 billion US per year isneeded until 2030 for the developing andtransitional economies to meet their energyneeds. Most developing countries offer excellentnatural conditions for the use of renewableenergy systems (RES) for rural electrification.RES are more cost effective than traditionaldiesel generator sets. Moreover, thesestandards can make important contributions infighting climate change.Rural electrification means more than justlighting. Electrification provides a sustainableelectricity power supply.The rural electricity supply, the same as in developedcountries, has a significant social impact on communicationand social activities, health and educational services,and on facilities. Rural electrification also prevents urbanmigration, provides a stronger sense of community,1.6 billion people worldwide—more thanone-quarter of the world’s population—donot have access to electricity in their homes.– Ernesto Macias Galan, President, Alliance for RuralElectrificationAmerican Council On Renewable EnergyExecutive Summary Report 40

educes mortality and improves gender equality. Electricityhas also a substantial impact in terms of economic developmentby increasing productivity and economic growth.World electricity demand is expected to doublebetween now and 2030.Most of the growth of the world’s electricity demand isoccurring in developing countries, where electrificationrates are not keeping up with population growth. There are2.5 billion people who rely on traditional biomass as theirprincipal source of energy. This has terrible consequenceson land use and degradation, but also on human health.Indoor air pollution is directly responsible for 1.3 milliondeaths per year. The cost of fossil-fuel imports is unbearablefor many developing countries. Sudden price increasescause economic interference and can disrupteconomic growth. In many less developed countries, alarge percentage of export earnings (i.e., up to 40 percentin Nepal) are diverted to pay for the importation ofpetroleum fuels.Off-grid power generation is often the bestsolution for bringing an electricity supply torural areas.Due to low potential electricity demand, and severephysical limitations, grid extension is often not a feasibleoption. According to the International Energy Agency, thefigures regarding access to energy will remain largelyunchanged in 2015 unless new strategies are adopted toexpand access to modern services. Therefore, newapproaches are needed to increase the production ofelectricity in rural areas, and to improve local livingstandards. One of the best solutions is a hybrid off-gridpower system. This type of system offers the followingbenefits:• Higher flexibility by coupling all consumers andgenerators on AC (alternative current)transmission line,• Standard AC used technology in the powerrange above several kilowatts,• Different local renewable and conventionalenergy sources are suitable to form a hybrid grid,• Simple expandability,• Extension of an existing diesel based powersystem, and• Use as a backup solution for unstable public grids.A number of opportunities arise in the processof rural electrification.Opportunities from rural electrification include stimulatingfurther investments from the private sector, promotingwin-win situations between all stakeholders involved(foreign industry, local industry, users, local installers anddistributors), fostering economic development through thegeneration of wealth and employment, and increasingelectrification rates in a sustainable way.Solar power is an excellent option for energygeneration in developing countries.Photovoltaics and solar thermal systems have manyapplications in remote and rural areas because thetechnology has no moving parts, generates electricity thatcan be used immediately or stored in batteries, and doesnot depend on the reliability of the grid infrastructure, oron the fluctuating price of oil. Solar power in developingcountries creates opportunities for water pumping andpurification, electrification of rural schools and clinics,microenterprise, household and community lighting, andwireless internet.International Climate andEnergy PolicyInternational attention, appeal, and collaborationis being garnered by investments in cleantechnology and renewable energy projects.At the 2008 Investor Summit on Climate Risk atthe United Nations, signatories of the Summit’sAction Plan agreed to a total investment of $1.75trillion. The action plan initiated the deployment of$10 billion immediately to start mitigating theeffects of climate change. The action plan alsocalled for other measures, including improvingenergy performance of real estate portfolios andinvestments, bettering corporate disclosure offinancial and material risks posed by climatechange, requiring investment managers to assessclimate in portfolios, and factoring in carbon costsinto valuations and investment analysis. Cleantechnology and renewable energy are viable solutionsto the headline issues that will be raised atboth COP 15 Conference in December 2009 and the2010 Investor Summit at the United Nations.American Council On Renewable EnergyExecutive Summary Report 41

IRENA, the International Renewable EnergyAgency, was specifically created to aid thefinance and development of renewable energyprojects worldwide.IRENA includes developing countries and involves them inthe climate change negotiation process. Currently, 136countries have joined IRENA by signing the Agency’sstatute, but notably missing from the membership areIndia and China. There have been positive responses fromdeveloping and emerging economies and there has beena real demand for an international renewable energyagency. The first session and founding meeting of IRENA’sPreparatory Commission was held in Bonn, Germany atthe end of January 2009. During the second session latelast month in Sharm El Sheikh, Egypt, the PreparatoryCommission named Abu Dhabi as the interim hostlocation of the agency’s headquarters and the Commissionnamed Hélène Pelosse of France as the interimDirector-General. The US, a major international renewableenergy player, only joined IRENA recently at this lastsession in June.ConclusionsThe United States and China will have the mostimpact on the global renewable energy marketin coming years. These two countries must leadby example in renewable energy development,investment, and financing. The United Statesappears to be on the right track with a largeportion of the American Recovery andReinvestment Act slated to go to renewableenergy and energy efficiency projects andresearch. President Obama and his newadministration have prioritized energy andenvironmental issues, and now the world waitsto see what action is taken. China has aresponsibility to develop its renewable energyresources instead of relying on petroleum to fuelits vehicles, and coal to produce its electricity.The rest of the world will look to both countriesto bring the future of renewable energy.Session ReferencesB1 - Global Renewable Energy IndustryMichael Eckhart, President, American Council On Renewable Energy (ACORE) (Chair)David Wortmann, Director Renewable Energy & Resources, Germany Trade & Invest [slides]Suresh Hurry, Director, IT Power [slides]Ernesto Macias Galan, President, European Photovoltaic Industry Association [slides]Juergen Morhard, Counselor, Head of the Economic and Commercial Section, German Embassy Washington [slides]Fredrick Potter, Executive Vice President, Hart Energy ConsultingTammy Klein, Executive Director, Global Biofuels, Hart Energy Consulting [slides]D6 - International Markets & PolicyPeter Richards, Communications Director, REEEP (Chair) [slides]Mike Rosenfeld, Vice Consul, UK Trade & Investment [slides]Craig O’Connor, Director, Environmental Exports, Export-Import Bank of the U.S. [slides]David Fulton, Advisor & Director of Business Liaison, The World Bank [slides]Lynn Tabernacki, Senior Manager, Renewable Energy and Sustainable Development Finance, OPIC [slides]American Council On Renewable EnergyExecutive Summary Report 42

D7 – ChinaJing Su, Director of US-China Program, American Council On Renewable Energy (ACORE) (Chair)Louis Schwartz, President, China Strategies LLC [slides]Sebastian Meyer, Director, Research & Advisory, Azure International [slides]Yong X. Tao, Ph.D., Associate Dean and Professor, Florida International University [slides]Ryan Hodum, Senior Associate, David Gardiner and Associate LLC [slides]D8 - Developing CountriesJudy Siegel, President, Energy & Security Group (Chair) [slides]Mark Riedy, Partner, Andrews Kurth LLP [slides]Ohene Akoto, Country Director, Jatropha AfricaBob Freling, Executive Director, Solar Electric Light Fund (SELF) [slides]Ernesto Macias Galan, President, European Photovoltaic Industry Association [slides]Stephanie Hollis, Chairman of the Board, Solar Stik [slides]F1 - Sustainability and Climate PolicyHoward Learner, President, Environmental Law and Policy Center (Chair)Aimee Christensen, Founder & CEO, Christensen Global StrategiesFredrick R. Anderson, Partner, McKenna Long & Aldridge LLPJohn Kadyszewski, Director, American Carbon Registry, Winrock International [slides]Billy Parish, Co-Founder, Energy Action CoalitionAmerican Council On Renewable EnergyExecutive Summary Report 43

Renewable Energy Economics, Marketplace,and FinanceOverviewBecause RETECH was held just weeks into anew Presidential administration, and amidst thebiggest economic crises in generations,economics were of vital interest at RETECH2009. Discussion regarding various aspects ofthe economy took place in nearly every session,spanning the implications of the AmericanRecovery and Reinvestment Act, the state offinancial markets, and the prospect of RPS andcarbon legislation at the national level. Leadersfrom state and national government, finance,and policy convened to discuss how to get therenewable energy economy—and the nationaleconomy—moving once more.ConsensusAt RETECH 2009, there was a sense of optimismregarding renewable energy economics and thefederal government’s commitment to renewableenergy. There was also a humbleacknowledgement of the problems yet to besolved. With a once-in-a-generation stimulusplan sitting astride a once-in-a-generationmarket crisis, hope and uncertainty bothabounded. The innovative action taken byCongress to mobilize renewable energydevelopment as part of the American Recoveryand Reinvestment Act presented the industrywith many new opportunities. Theseopportunities were laid out in great detail byRETECH panelists.Economic DriversState Renewable Portfolio Standards (RPS) areparamount to systematically increasingrenewable energy generation in the US.The rising, volatile price of fossil fuelgeneratedenergy is the main economicdriver of the renewable energy industry. StateRenewable Portfolio Standards (RPS) haveplayed and still play a key role in mobilizingrenewable production.Renewable Portfolio Standards were born in 1995. Today,28 states have mandatory standards, 16 of them inexcess of 20%, and 6 have voluntary standards,explained panelist Alan Nogee, Director, Union ofConcerned Scientists.Under a business-as-usual scenario, by 2025 thesestandards will yield 77,000 MW of new renewable energy,reducing carbon emissions by 183,000 tons, the equivalentof taking 30 million cars off the road for a year. In thisscenario, renewable energy would mostly displace gasandcoal-fired plants, which Mr. Nogee forecasted wouldbe replaced by 53% wind and 21% solar, with biomassassuming a large role in the early transitional years. Ontop of a 1.6% ($95 billion) consumer savings comparedwith a business-as-usual model by 2030, the world wouldenjoy massive environmental benefits from the switch.With state and federal tax incentives, renewableenergy can be more affordable and competitivewith other energy sources.State and federal subsidies such as the Production andInvestment Tax Credits have provided the short-term costviability of renewable energy options. These credits havebeen extended and are compatible with a credit-constrainedenvironment in the American Recovery andReinvestment Act (ARRA). The ARRA extends the ProductionTax Credit (PTC) for Wind to 2012, and all otherrenewables to 2013, explained Eli Katz of Chadbourne &Park. The extension should help guard against the boomand bust cycles renewable energy has suffered during theAmerican Council On Renewable EnergyExecutive Summary Report 44

past, uncertain legislative environment. The ARRA alsoextended the Investment Tax Credit (ITC), and expandedits use to wind projects as an alternative to the PTC. Katzforecasted that due to current credit shortages, the ITC/PTC choice will boil down to the option that requires lesscapital on day one.Other factors affecting renewable energy financeand economics include bonus depreciation,cash grant, and manufacturing tax credits.The American Recovery and Reinvestment Act alsoextends the 2008 Stimulus Act which grants developers50% of the Bonus Depreciation upon implementation onprojects completed before the end of 2009, with theremainder of the depreciation written off on the normalschedule. A new stimulus package option is the CashGrant program, where the government essentially buys adeveloper’s investment tax credit of 30% of the totalproject cost, another mechanism to decrease the up-frontcapital necessary to develop projects. Lastly, a new 30%Manufacturing Investment Tax Credit is now available forprojects that re-equip or expand manufacturing facilities tofacilitate the production of renewable energy, energy efficiencyand fuel cell technologies.The Department of Energy’s role in scaling uprenewable energyThe Department of Energy is expected to assume a muchlarger role in the renewable energy project implementationprocess, by granting increased funding with an emphasison the Loan Guarantee Program. The program, with $60million in new credit set aside for clean energy projects, isdesigned to catalyze the commercialization of innovativecarbon-reducing technologies. While funding was slow tomove out the DOE’s door in the past, the success of theprogram hinges on efficient implementation. At RETECH2009, Wendolyn Holland, of the Energy Efficiency/Renewable Energy (EERE) Administration, spoke on thehistory of the Department of Energy and its approach tothe coming stimulus effort:“The DOE began with the Manhattan Project and spendsmuch of its time looking over the nuclear arsenal. Soadministering the new stimulus programs is a bit of acultural challenge for the organization,” said Holland.“Secretary Chu wants to focus on management within theagency, cutting down on people doubling up on the samework. With $4 billion for the Smart Grid, and much forweatherization and state & local energy grants, the DOE isexcited to begin work.”State-Level EconomicDevelopmentWhile national policies take shape, leaders fromthe state level convened to discuss theapproaches they’ve taken to building up theirrenewable energy markets.New York: Facilitating a Diverse Portfolio ofRenewable ResourcesDon LaVada, Director of the New York State EnergyResearch and Development Authority (NYSERDA), spokeabout the agency’s approach to helping the state’srenewable energy industry. “The old jobs are gone”, saidLaVada, “and they’re not coming back. But new jobs arecoming in.”NYSERDA is focused on improving on the mistakes andshortcomings of the last renewable energy boom in the1970s. By re-orienting the state’s shrinking manufacturingand maintenance base toward a renewable energyorientedfocus, the government can be a facilitator ofrenewable energy.The old jobs are gone and they’re notcoming back. But new [green] jobs arecoming in.– Don LaVada, Director of Consumer Services and EventsManagement, NYSERDANYSERDA currently sponsors a technician certificationprogram and an International Brotherhood of ElectricWorkers (IBEW) training program. Another of the agency’sdistinguishing traits is its diverse orientation, mirroring astate of many cultures and landscapes. Maintaining thisdiversity by seeing all types of technologies to successNYSERDA’s goal.Oregon: Job Creation in a Zero Sales TaxEnvironmentIn Oregon, the Office of the Governor is working towardgreen job creation. In a state without a sales tax, incometax is everything. “Losing jobs is losing money”, explainsNancy Hamilton, a senior policy advisor to Governor TedKulongoski. The national economy’s struggles are magnifiedin a state that has already lost a great deal in thelogging industries.American Council On Renewable EnergyExecutive Summary Report 45

Oregon is orienting much of its Stimulus Plan cash towardenergy efficiency, saving the state millions, while growingthe state’s renewable energy portfolio through a windtechnician training program, and business energy taxcredit that returns 35% of eligible project costs for projectsthat invest in energy conservation, recycling, renewableenergy resources, and less-polluting transportation fuels.Massachusetts: University Spinoffs toCommercial ViabilityIn 2008, Governor Deval Patrick signed the MassachusettsGreen Jobs Act, creating the Massachusetts CleanEnergy Fund. The Fund provides grant money to stimulateclean energy companies, create green jobs, and providejob training programs to ensure all people have access tonew green jobs.The Fund’s Executive Director, Patrick Cloney, discussedMassachusetts’s approach to renewable energy development.Home to several high-profile research institutions,Massachusetts cannot provide large financial incentives,but it can shrink the growth calendar for companies, andfacilitate better communication between research andcommercial entities.Founded in 2004, the Massachusetts Technology TransferCenter is one of the state’s multiple business developmentprograms that help young research projects spin offinto private investment. Part of the Fund’s goals areaccelerating “ecosystem” interaction between entities ofvarious sizes, and navigating between municipalities.Some states have implemented economicdevelopment plans utilizing renewable energyresources.Texas: A Workforce BoomDoug Ridge, Director of Employer Initiatives with the TexasWorkforce Commission, spoke to the group about Texas’swind boom and the resultant “bump” in job creation, withsolar right behind. With more wind capacity than any otherUS state, growing at the rate of one utility-scale installationa week, it is no surprise that Texas’s renewableenergy workforce grew by 130% between 2000 and 2007.The resultant economic benefits revert not only to installers,but also to landowners and manufacturers.Kansas: A Rising Wind PowerhouseEnvisioning the manufacturing development a renewableenergy boom in Kansas would create, Lieutenant GovernorMark Parkinson of Kansas pointed out that 200,000turbines “means 200,000 generators, gearboxes, and600,000 blades,” a huge manufacturing opportunity.Renewable energy is an ecosystem. – PatrickCloney, Executive Director, Massachusetts CleanEnergy FundKansas is increasingly realizing its huge wind capacity,going from 3 installed megawatts in 1997 to 365 megawattsin 2007.. In 2008, 900 MW were installed, and inJanuary 2009, alone, 1,000 more. To Parkinson,renewables can be scaled by regulators, making fossilpower artificially more expensive and green less so—or bynaturally achieving economies of scale in the marketplace.A national RPS is a difficult political proposition but wouldbe very effective, and subsidized research can help theprivate sector lower costs more rapidly.Economic ChallengesRenewable energy markets continue to besensitive to volatility.Barriers exist for developers under uncertainenergy, credit, and carbon prices. It is moredifficult to evaluate the economic risks associatedwith various project ownerships and financialstructures under the current market state.The transmission of renewable energy fromremote generation facilities to higher densityload centers is one of the greatest challengeswe are facing.There are many economic barriers to large-scale renewableenergy adoption, not least of which is that of transmission.Transmission constraints limit the deliverycapacity for renewable energy, with new transmissionfacing high integration costs associated with accommodatinga large amount of intermittent resources.Changing supply dynamics play a critical role inthe renewable energy marketplace.Ethan Zindler of New Energy Finance spoke on thechanging market dynamics of the renewable energy world.The period between 2004 and 2007 saw historic, nowunderstood to be dangerous, amounts of leverage in theAmerican Council On Renewable EnergyExecutive Summary Report 46

marketplace, accelerating and deepening the housingcrash. For renewables, the economic crisis of 2008-2009spells a transition from the equipment shortages endemicduring boom years that preceded it to supply-chain glut inthis climate of credit shortage. Supply of commoditiessuch as silicone have increased in the face of risingdemand, likely leading to great decreases in price.So how do we double renewable energy? The mostimportant action is policy implementation, especially theloan guarantee program, transmission permitting, and, toa lesser extent, the Stimulus Grant Program offered in lieuof the ITC. Also key to the health of the sector is newpolicy—whether it be an RES or carbon tax. Lastly, capitalavailability has to be present to see any substantialinvestments take off.Environmental Offsets andCreditsDeforestation is the second largest contributorto global carbon emissions behind only thepower generation industry.Founder of Canopy Capital Limited, MichaelNaylor conveyed that tropical rainforests cover1.2 billion hectares of land, an area larger thanEurope, and store a quarter of all the carbon onland. Every day, deforestation emits CO2 equivalentto 12.5 million people flying from New York toLondon. Tropical deforestation emits about 1.5billion tons of carbon each year—more than theentire global transport sector. Every year,deforestation emits the same amount of CO2 as580 mid-size coal-fired power stations, equivalent tothe total annual CO 2emissions of the US or China.Unless action is taken, the impact of forestemissions on climate change will cost around $1trillion a year by 2100.Carbon Financing and TradingThe current financial crisis is fosteringstructural, behavioral, and regulatory changes.Michael Zimmer of Thompson Hine LLPcalled for the financing of companies,innovation and technology–not just projects.Among other changes, internationaldiversification of industry is undermined, andtherefore many non-US markets have fallenworse than US markets. When liquidity is deepand credit available, developing economiesthrive. With such velocity and credit constraints,those developing markets fall harder. Look forvalues of risk modeling and ratings agencies todiminish in value. Sophisticated risk modelinghas experienced its downfall for derivatives,dynamic hedging. Consolidation in industry andfinancial sector concentration will become morepowerful. Loss of investment bank capacity,financial innovation and smaller, medium-sizedinstitutions will mean higher interest rates andfees. Financial concentration means differentscale, aversion to smaller projects like renewables,and increased conflicts of interest withcontinued price volatility. Managing multipleroles in securities underwriting, carbon trading,lending, investing, secondary market developmentand money management will prove daunting.The lack of a common American standardmakes defining an offset and following theguidelines set forth even more important.A carbon offset credit (or “offset”) is an instrumentreflecting the value of the direct reduction, avoidance orsequestration of a unit of carbon dioxide equivalent (CO 2e)that is generated from an unregulated sector or facility.Certain common attributes that define a high-value offset:• Additional – A project must not be required byany regulatory or legal mandate and shouldclearly be beyond “business as usual”.• Permanent – Emission reductions must bepermanent and appropriate contingenciesshould be instituted for sequestrationprojects that carry a risk of reversal.• Real – Tradable offset credits should only beawarded after emission reductions haveoccurred.• Verified – At inception, projects, baselines,and protocols should be reviewed andapproved by an independent third-party.American Council On Renewable EnergyExecutive Summary Report 47

Independent third-parties should alsoundertake in periodic verifications ofemission reductions realized.• Measurable – The reduction should bemeasured using accepted methodologies.After measurement, the offset credit mustonly be counted once and then retiredthrough a credible registry system.Carbon projects developed today in a mannerconsistent with expected federal US standardswill have the best chance of future recognitionand value.Josh Green, CEO of the Verdeo Group, predicts that nocompliance for carbon projects will be required in the USuntil 2013. The Clean Air Act is unlikely to be used toregulate greenhouse gas emissions. However, new carbonprojects must be “over and above” existing regulations tobe eligible for credit. It appears that a significant percentageof allowances for these particular carbon projects willbe auctioned initially, and will continue to increase overtime. There will be set-asides for early action granted toprojects certified and registered using “best practice”standards. Finally, offset credits from a variety of sectorswill be allowed to lower the cost of compliance.There is a forecast of growth in carbon markettrading.Zimmer described that most of current global carbonmarket has come from nitrous oxides, HFC-23 refrigerants,captured in industry. They have higher value andlower costs of recovery. These waste gas recovery projects(75% of total credits traded) will decline to 25% of totaltrading value by 2012, according to New Energy Finance.Their costs of recovery are at $1.30, while renewableenergy and efficiency costs range from $6.50 to $20 forcomparable reductions. There has been an increasedpatent activity for clean technology and carbon tradingtools and administration. The US leads with largestnumber of renewable energy patents followed by Japanand Australia. Financial sector difficulties will meantightening credit markets. With growing environmentalconcern, it is likely that a shift will occur from waste gasrecovery and this movement to a clean technology basewill favor renewables.The transition to a low-carbon economy is astrategic process.An emissions trading system is an essential, yet insufficient,policy tool on its own in accelerating the transitiontowards a low-carbon economy. This is true for three mainreasons. First, given the urgency of climate change andthe combination of policy objectives governments aretrying to achieve (i.e. technology leadership, energysecurity, local air quality); a spectrum of measures will berequired. Second, not all sectors respond well to carbonpricing. Third, still in early days, it remains to be seen ifcarbon trading strategies will be fully successful inencouraging new investment. The precise program detailscan significantly influence the results, in terms of pricesthat customers have to pay, investment decisions andactual abatement achieved (lessons from Europe).Carbonprices are determined, influenced and formed by the threekey factors of fundamentals, design and behavior.Certain risks become apparent with anAmerican cap and trade system.The following risks make implementing cap andtrade legislation in the United States difficult:• Regulatory risks, such as project approval,validation, and verification of emissionsreductionprojects.• Political risks, that could alter climate changepolicies and obligations, such as host-countryinstability, expropriation of credits, contractfrustration, credit confiscation, failedvalidation, and more.• Technology-performance risks, timing of capgoals with technology availability.• Carbon-financing risks, including an inabilityto secure or maintain financing based onprojected or volatile carbon-revenue streams.Credit value once received for carbon is atrisk of market flux.• Carbon-performance risks, associated withvariability in the generation, permanence, andownership of emissions reductions.• Counterparty credit risks, including the failureto deliver credits as contracted; and creditsupport for risk transfers.American Council On Renewable EnergyExecutive Summary Report 48

• Complexity and operating costs of newenvironmental derivatives after prior WallStreet experiences with various riskmanagement products, and linkages ofinternational carbon markets.• Clean Development Mechanism (CDM) creditsfrom projects in renewables, methane gasreductions, cement and coal bed methanereductions, supply energy efficiency, demandside energy efficiency, fuel switching,forestation projects, and other reductions.• Supply constraints, because Kyoto signatoriesare behind in their greenhouse gas reductioncommitments, and there is a shortage ofgood projects with carbon credits content.• Project financing gap growing, with up frontfinance required, only “pay on deliverycontracts,” project risks not shared butallocated to developer and not truly globalproject markets yet.Capital AccessThere are some real benefits for a private cleantechnology company to go public at an early stage.According to Robert Peterman of the TorontoStock Exchange, these benefits include thefollowing advantages: use share capital toacquire other companies and augment organicbusiness growth with strategic M&A activities,utilization of option plan to retain key employeesand conserve cash for growth, on-going ability tofinance growth by accessing capital markets asbusiness objectives are achieved, and liquiditypremium from investors, particularly givencurrent market conditions.By watching some strategic investors, a trendtowards renewable energy and energy efficiencyemerges.In the utility and oil industries, Duke Energy acquiredCatamount Energy, a wind power company, for $240million. Shell has invested $1 billion over the past fiveyears in renewable energy technologies. Chevron hascommitted to invest $100 million per year in renewableenergy. PG&E will invest $1.4 billion in developing solarpower facilities.In the industrial sector, General Electric Energy FinancialServices has a $4 billion portfolio of renewable energyassets, including Ionics, Comverge, SunPower, A123Systems, and number of Wind projects. GE will also invest$6 billion in renewables by 2010. There is a joint venturebetween DuPont and Genencor, where they have committedto $140 million over 3 years to develop cellulosicethanol solutions.The automotive industry has seen General Motors investin a biofuels start-up, Coskata, to speed the flow ofethanol for GM’s flex-fuel vehicles. In addition, all majorcar manufacturers in the US and abroad have invested indeveloping electric cars and related battery technologies.Finally, Google is planning to invest in solutions to generate1 GW of renewable energy from a coal-fired plant. Theyhave also committed up to “hundreds of millions” ofdollars to bring new technologies to market. Currently,Google is working with eSolar on its solar thermal powerinitiative as well as advancing geothermal power technologyand systems. They too have invested in a wind powercompany, Makini Power.ConclusionsThe state of renewable energy economicsevoked feelings of optimism and promise amidstthe uncertainty of a national and globaleconomic crisis. The American Reinvestmentand Recovery Act extended existing renewableenergy tax incentives, and created new ones tocatalyze the market in a time of credit shortage.Attendees’ confidence was also bolstered by themany state-level success stories shared, each,microcosms of the economic growth a nationalrenewable energy standard would created.Infrastructure barriers still inhibit renewableenergy scale-up, and economic uncertaintieslinger on in the volatile market. But all inattendance were inspired by the expandednational commitment to renewable energydiscussed at RETECH 2009.American Council On Renewable EnergyExecutive Summary Report 49

Session ReferencesA8 - Carbon / REC TradingGraham Noyes, Of Counsel, Stoel Rives (Chair) [slides]Peter L. Gray, Partner, McKenna Long & Aldridge, LLP [slides]Graeme Martin, Manager of Business Development - Environmental Products, Shell Energy North America [slides]Brian Prusnek, Vice President, Climate Change Capital [slides]Sonia Medina, US Country Director, EcoSecurities [slides]B6 - Economic Development Workshop 1Moana Erickson, Executive Director of the Center for Economic Research, American Council On Renewable Energy(ACORE) (Chair)Mark Parkinson, Lieutenant Governor of Kansas [slides]B7 - Economic Development Workshop 2Don LaVada, Director of Consumer Services and Events Management, NYSERDA (Co-Chair) [slides]Douglas Ridge, Director, Employer Initiatives, Texas Workforce Commission (Co-Chair) [slides]Ross Tyler, Director of Clean Energy, Maryland Energy Administration [slides]Patrick Cloney, Executive Director, Massachusetts Clean Energy Center [slides]John Filan, Executive Director, Illinois Finance Authority [slides]Nancy Hamilton, Senior Policy Advisor, Oregon Economic Development & Workforce, Office of the GovernorB8 - Economic Development Workshop 3Michael Butler, Chairman & CEO, Cascadia Capital (Chair)Daniel Kammen, Class of 1935 Distinguished Professor of Energy, Energy and Resources Group, Founding Director,Renewable and Appropriate Energy Laboratory, University of California [slides]Michael Peck, Spokesman & Head of Media Relations, GamesaDavid Benson, Partner, Stoel Rives LLP [slides]Kenneth Locklin, Director – Finance & Investment, Clean Energy Group [slides]C1 - U.S. Renewable Energy MarketplaceLisa Frantzis, Managing Director, Navigant Consulting (Chair) [slides]Mark Parkinson, Lt Governor of Kansas [slides]Alan Nogee, Director, Union of Concerned Scientists [slides]Eli Katz, Counsel, Chadbourne & Parke LLP [slides]Wendolyn Holland, Special Advisor, Commercialization, Department of Energy [slides]Ethan Zindler, Head of North American Research, New Energy Finance [slides]American Council On Renewable EnergyExecutive Summary Report 50

C6 - Environmental and Carbon FinancingMichael Zimmer, Of Counsel, Thompson Hine LLP and Executive in Residence, Ohio University, Voinovich School ofLeadership and Public Affairs (Chair) [slides]Michael Naylor, Director and Founder, Canopy Capital Limited; Chairman, Advisory Board The Prince’sRainforests Project [slides]John Cavalier, Managing Partner, Hudson Clean Energy PartnersJosh Green, CEO, Verdeo Group [slides]Fabrizio Donini-Ferretti, Head of Energy, Dexia Credit Local [slides]C7 - Venture CapitalIra Ehrenpreis, General Partner, Technology Partners (Chair)Erik Straser, Partner, Mohr Davidow VenturesMichael Ware, Managing Director, Good EnergiesDon Wood, Managing Director, Draper Fisher JurvetsonC8 – Capital Access: Public and Private MarketsJulie Muraco, Managing Partner, Praeditis Group LLC (Chair)Adam Oliveri, Managing Director, SecondMarket [slides]Robert Peterman, Senior Manager, Global Clean Technology, Toronto Stock Exchange [slides]Corinne Figueredo, Head of Cleaner Technology & Sustainable Business Innovation, International FinanceCorporation (IFC) [slides]Alex Bernstein, Co-Head of West Coast Banking, Ardour Capital [slides]D1 - Renewable Energy Project FinanceThomas White, Director, Stark Investments (Chair) [slides]Neil Auerbach, Managing Partner, Hudson Clean Energy Partners [slides]John Anderson, Senior Managing Director, Head, Power & Project Finance, John Hancock Financial Services [slides]Schuyler (Skip) Grow, Managing Director, Lazard Freres & Co. [slides]Kevin Walsh, Managing Director, GE Energy Financial Services [slides]John Filan, Executive Director, Illinois Finance Authority [slides]American Council On Renewable EnergyExecutive Summary Report 51

Solar: Markets, Technologies, and PolicyOverviewSolar energy was one of the most-discussedtopics at RETECH 2009, ranging fromtechnology to policy, scale, and more.Decreasing costs, raising efficiency andmaximizing its presence in concentrated,distributed and building-integrated form are thegoals of the solar sector.ConsensusThe consensus at RETECH 2009 was that solarenergy is an extremely diverse renewable energysource whose benefits are still being discovered.From traditional crystalline applications, solarenergy is expanding outward to concentratedinstallations as well as adapting itself tobuildings and windows through thin-filmphotovoltaics. Grid parity is the endgame forsolar energy, with the combination of technologicalinnovation and supportive policypoised to deliver it. The American Recovery andReinvestment Act provides some neededcatalyzing factors for projects in the currentperiod of tight debt and credit markets.Solar TechnologySolar energy has a demonstrable valueproposition.Over its 50 years of use, solar energy hasdemonstrated merits on several levels.Delivering megawatts interchangeable with lessclimate-friendly energy generation options, solarpower’s fuel is free, and without constraints onboth supply and price. Solar installations have a25 to 50-year life, and close to a one-yearenergy payback period under its improving costcurve, said Paul Wormser, Senior Director,Engineering and Product Development of SharpSolar. Generating no pollution and no noise,solar power is available anywhere in the UnitedStates and globally. Solar power generation isviable on residential and commercial buildings,in centralized power plants, all the way down tocalculators, making it one of the most versatileand scalable forms of renewable energy.Solar cells are the basic building blocks of solarmodules, or solar collectors.The solar cell makes up any PV system, with silicon astheir fundamental element. Placed into ingots andarranged onto wafers, solar cells are the building blocks ofsolar modules. Cells are arranged into modules, combinedwith electronic components and installed on a structure.Solar energy has a relatively long history and abright future.Utilization of solar energy began in 1963 with crystallinepanels, off-grid panels that were usually found on residentialand commercial buildings. For today and in the future,crystalline panels can provide durability, efficiency(nearing 20% efficiency) and a proven performance record.A relatively new technology, thin film solar is a low-profile,low-cost, photovoltaic technology that has been “the nextbig thing in solar energy” for some time as it struggles tobolster its stability and enhance its durability.American Council On Renewable EnergyExecutive Summary Report 52

The technology debate: thin film versus panelsThere was discussion at RETECH about which technology—solar panels or thin film—would be the PV application ofthe future, with some consensus that a mixture of traditionalpanels and thin-film will bring the most benefit.The two technologies can coexist, said Wormser, forecastingthat a price increase spurred by heightened demandfor silicon will cause the market to go the thin film route,which requires less silicon. “From an efficiency standpoint,thin film can beat the cost per kWh of multi-crystalline PVpanel in some applications, delivering superior energy perunit of power capacity but less energy per unit of surfacearea.” Thin-film has a lower manufacturing cost, pointedout Wormser, but only at a higher volume, and it requiresmore man-hours to produce an equivalent output fromtraditional PV as a result of being generally less efficient.Clear, low-profile and increasingly durable, thin-film can beinstalled on windows, clear rooftops, and other newsurfaces where panels cannot be installed. From a prerecessionforecast of 70% growth per year for thin-filmtechnologies, Christopher O’Brien of Oerlikon Solarpredicts a still-substantial 50% rate of growth over thenext five years.Finance and EconomicsSolar photovoltaic growth continues its upswing.Accordingly, demand for photovoltaics hasskyrocketed since 2000, rising from lessthan 200 MW in 2000 to 4,500 in 2008, withGermany and Spain’s feed-in tariffs catalyzingtoday’s two largest markets. A consistent rise inGermany’s electricity prices, paired with adecreasing incentive curve have Germany’scost/KWh of solar and traditional electricitymeeting at some point between 2012 and 2017,according to Travis Bradford, President of thePrometheus Institute.Spain’s first feed-in tariff debuted in 2007 with a goal of400 MW to be installed by 2010. The program was hugelypopular, with 344 MW installed by September of 2007causing the government to temporarily suspend andrestructure the program, which went back into effectearlier this year. Spain is currently the world leader ininstalled solar capacity.Demand for solar modules is expected to stabilize in theneighborhood of 4,500-5,000 MW in 2009, resumegrowth as markets recover in 2010 and continue to growby an average of 32%, says Christopher O’Brien ofOerlikon Solar, taking the average of a number of studieson the topic. A 32% rate of annual growth would meanover 18,000 MW of modules in 2013, over four times thecurrent output.Solar energy’s cost curve is headed the rightdirection.The upward curve of module production is mirrored by adecreasing cost per MWh of electricity in solar energy’squest for grid parity. The weighted average price for ablended PV module in 2008 hovered between $3.00 and$3.50/watt, down from over $3.50 in 2006, and expectedto drop below $2.50 this year as thin film gains marketshare. The average price per mWh of electricity in theUnited States is currently 8.6 cents and rising as a resultof rising grid costs and increased demand. Electricitygenerated from solar panels currently stands at around$0.20/kWh, but Christopher O’Brien expects innovationand economies of scale to bring the cost to grid paritysometime after 2013 at about $0.13/kWh, resulting in ahuge solar boom.A dramatic increase in electricity prices makesolar’s price per kilowatt-hour more attractive.The national average price of electricity inthe United States rose by a stunning 10.9%during the period of April 2005 to April 2006.– Paul Wormser, Senior Director, Engineering and ProductDevelopment, Sharp SolarSolar energy’s attractive value proposition hinges onsolar’s ability to compete against traditional energysources. Electricity costs rose an average of 10.9% fromApril 2005- April 2006, with many major US energymarkets approaching or exceeding $0.20/kWh. Theaverage national price/kWh of 8.2 cents/kWh masksthese extreme cost outliers.Materials have become a high percentage ofsolar module costs.If its versatility is solar’s greatest merit, the high percentageof the materials used in solar equipment is its biggesthurdle to overcome. Material costs account for more thanhalf the total cost of module production, according toSolar Module Assembly Science and Technology ManagerAmerican Council On Renewable EnergyExecutive Summary Report 53

of Dow Corning Solar Solutions. The current economicconditions have slowed the pre-recession solar boom’sdemand glut into an inventory surplus, but as the ARRAstimulus programs kick in, finding solutions to materialcosts and availability will again be a key challenge forsolar energy to overcome.There are several solar power-generationownership models.There are four major solar ownership models, says SteveChadima, Chairman of the Solar Alliance. In some cases, acustomer or third-party owned distributed generation canoffset load, in other cases, customers buy “shares” inutility-owned projects. Additionally, some third-partysystem owners sell wholesale electricity to the utility undera Power Purchasing Agreement (PPA). The last ownershipmodel is utility-owned generation, where the sale of solarenergy works much in the same way as through traditionalpower plants.Getting down to business: Solar incentives indetailSolar has been incentivized in different ways, falling underthe following general headings: tax incentives, directincentives, REC incentives, feed-in tariffs, and standardoffercontracts.•With tax incentives, a fixed percentage of system costis subtracted from taxes owed, reducing the cost ofimplementation, not impacting electricity prices, andproviding easy implementation. Tax incentives do not,however, have a built-in mechanism to maximize solarimplementation or to drive prices lower. They may strain astate budget if many projects are implemented in a shortamount of time. And as seen during the current recession,a simple reduction in taxes often leaves behind still-highcosts that are difficult to account for in a tight creditmarket.•Direct incentives come up-front, usually for smallersystems, rewarding performance at a decreasing rate overtime. While reducing costs for smaller users, directincentives can also help ease energy prices by encouragingperformance. Direct incentives are an appealingchoice as they drive down prices and maximize production,but there is speculation about how scaleable directincentives may be without significant impact to energyprices, and whether incentives fall in line with a sustainedrate of growth in the solar sector.•In REC purchase programs, the sale of a RenewableEnergy Certificate (REC) generated as an attribute of solarenergy, is used to offset energy costs. There are threemodels, known as payment, auction, and negotiated solarREC contracts, all falling under the REC incentive program.REC programs help ensure a low, market-subsidized costof electricity to ratepayers, but do not help developers withthe high costs of implementation that tax and directincentives seek to negate.•With feed-in tariffs, payment for energy is based oncost plus guaranteed profit, with no REC transfer. Easy tounderstand, this program has led to runaway costs in thepast in Spain.•With standard-offer contracts, payment is based on thevalue delivered, encompassing GHG attributes, RECs,utilities paying fair market value on the quantities delivered.These benefits, however, are often difficult tocalculate, and costs often do not compete against theenergy they displace, possibly favoring the implementationof low-cost technologies.There are a few examples of feed-in tariffs thathave been implemented successfully on local,state, or regional level.Feed-in tariffs (FITs) are a long-term, fixed-price paymentagreement in dollars per kWh, based on the cost ofgeneration. They guarantee interconnection as well as areasonable profit; “If you build it, we buy it” said panelistWilson Rickerson, though programs are differentiated bytechnology, size, application, and by resource.Gainesville, Florida, became the first location in Americain which a utility to adopt a feed-in tariff in February,2009, covering only PV at a rate of $0.32/kWh for 20years with a 4MW annual cap. Gainesville’s model is justone of many models being considered in the UnitedStates—California currently has one for generators under1.5 MW based on time-differentiated avoided cost, but ithasn’t proved very popular to date, says Rickerson. TheCalifornia model packages electricity and RECs, but thisisn’t the case everywhere.A Michigan feed-in proposal only includes electricity in theagreement, while a New Jersey proposal only incorporatesRECs. Another key question in the modeling of theseprograms is how feed-in tariffs are to coexist with netmetering, if at all. Under the Gainesville model, the tariffreplaces net metering, but under the New Jersey proposalthe FIT is a premium atop net metering, and in Hawaii, it isa premium only for excess generation.American Council On Renewable EnergyExecutive Summary Report 54

FITs have grown in popularity over the past 2 years asmechanisms to help states meet RPS goals. There is workto be done to broaden the scale and type of technologiescovered, which an increased portfolio of functional modelscan help promote. The uncertain economic environmenthas bolstered FIT credibility, providing investors a guaranteeof returns.Concentrated Solar PowerConcentrated Solar Power (CSP) encompassesseveral different designs.CSP is divided into Concentrated SolarThermal and Concentrated Photovoltaics;the first using the sun’s energy as a heat sourcefor a traditional power plant, and the secondutilizing a one-stage process involving PV panels.Built in hot, sunny areas, these installations aredesigned to handle peak load demand and haveincreasingly developed into viable storageoptions as well. The scale and method oftracking and harnessing the sun varies fromcompany to company, and region to region, withmany such models represented at RETECH2009.Concentrated Solar Thermal (CST) technologyuses heat generated from the Sun.CST projects use lenses or mirrors to reflect a concentratedbeam of reflected sunlight into a receiver that usesthe thermal energy to drive the electricity generationprocess. These projects often incorporate hyperbolictroughs, some focusing the light on a centralized thermalreceiver and some on a tube in the middle of the trough,both creating superheated steam that drives a boiler andproduces energy. Concentrated Solar Thermal projects canalso incorporate rectangular mirrors arranged in raysaround a central tower, dishes that reflect into centralreceivers, as well as modular designs that include multiplereceivers, making scaling easy. With advances in thermalstorage, such as molten salt tanks, solar thermal can gobeyond augmenting summer peak load and become ashort-term reserve option.Concentrated Photovoltaics (CPV) use energyfrom the Sun to create electricity.CPV projects are a centralized and scaled-up version ofconventional PV panels, which in recent years haveadopted dual tracking axes to optimize their angle to thesun. CPV units require minimal amounts of water comparedto solar thermal—but due to their one-step energyconversion process—must rely on battery advances if theyare to be viable storage options as well. Modular indesign, CPV projects have little impact on the surroundingarea and can be assembled in days, not months.Some challenges for CSP still remain.To secure grid stability under such bold REbuild-out scenario, dispatchable CSP plantswith thermal storage are needed at least forcritical summer on-peaks– Rainer Aringhoff, PresidentSolar Millennium LLCAs with other solar technologies, bringing down the cost ofCSP installations is at the top of the list, as well assmoothing integration issues with the grid. Performance isanother challenging characteristic of the industry, as wellas maximizing its capacity for energy storage.Policy and IncentivesThe American Recovery and Reinvestment Act(ARRA) will stimulate the solar industry.The Production Tax Credit/Investment TaxCredit (PTC/ITC) options within the ARRAare likely to be popular, possibly encouragingnew tax equity and bringing the cost/KWh downto wind’s levels if high yields are sustained inthat sector.The stimulus bill also removed the barrier to using the ITCoption for projects of under $2,000, as well as for utilityownedprojects. The 30% manufacturing tax credit is amajor boost to solar manufacturers, who face the highmaterial costs previously described. The accelerateddepreciation program is also helpful, though it does notaddress project finance purposes. Finally, the FederalLoan Guarantee Program has the potential to supportweaker credits and enable more projects if administeredquickly and with low transaction costs.The Investment Tax Credit (ITC) grant programAmerican Council On Renewable EnergyExecutive Summary Report 55

Under the ARRA option of taking the 30% ITC as a cashgrant, the demand for tax equity eases, possibly loweringyields and supporting more projects. Tax equity is stillneeded to monetize project depreciation, however, and willmost likely be used to finance the grant.The Solar MarketplaceWhere we stand: current solar market conditionsThe current market conditions pose somedifficulties for solar energy and otherrenewable sources. With debt less available tonon-investment-grade projects, and more riskembedded into bank spreads (borrowing costplus risk), more projects are unable to befinanced and those that can carry less leveragethan before, said Gianluca Signorelli of MMARenewable Ventures. These debts are usuallyrepayable over ten years, versus the previous15-year-plus horizon. With many tax equityplayers vanished in the wake of the credit crisis,there is a much smaller appetite for tax equitythan in 2008. With a smaller pool and higherdemand, higher yields are present in the taxequity market.The stimulus bill will provide funding for largersolar projects, including ones with CSP.The ARRA helps boost the market for CSP since highcapital costs require the 30% federal ITC, says AbengoaSolar’s Chief Operating Officer, Scott Frier. The accelerateddepreciation bonus is also a necessary driver to bring theenergy cost down for the purchaser. Still, under idealmarket conditions, tax equity investors are needed tomonetize the ITC to make the project viable over the firstfive years. These tax equity investors have dwindled as aresult of the economic crisis, causing developers tolooking to finance projects via debt, but the health of thefinancial sector during RETECH 2009 made restricted theterms and amount of debt available.Along with the other ARRA actions, expedited enactmentof the Federal Loan Guarantee Program and siting processeswill determine the health of solar development astax equity and debt markets get back on their feet.Policies and incentives aimed at kickstartingthe CSP market are essential.Gains from these incentives will far outweightheir implementation costs.– Scott Frier, Chief Operating Officer, Abengoa SolarConclusionsThe past 50 years have seen the birth and rapidgrowth of the solar energy sector, both towardbetter efficiency and cost as well as breadth ofapplication. Solar is unique in its applicability tobuildings, appliances, centralized powergeneration and residential use. The road aheaddemands utilization of new materials and newapplications, the continued availability of silicon,all with the goal of generating more electricity inmore places for less money, and supplying it tothe grid. Solar energy’s representation atRETECH 2009 should be noted for its breadth ofcontent, and promise of the many new ideasthat dot solar’s quest for grid parity and beyond.Session ReferencesA3 - PV TechnologyLarry Kazmerski, Executive Director, Science & Technology Partnership, National Renewable Energy Laboratory(NREL) (Chair)Paul Wormser, Senior Director, Engineering and Product Development, Sharp Solar [slides]Eric Daniels, Vice President, Technology, BP SolarConrad Burke, President & CEO, Innovalight, IncAmerican Council On Renewable EnergyExecutive Summary Report 56

Haroula Reitz, Global Manager of Science and Technology, Dow Corning Solar SolutionsChris Shirk, Solar Module Assembly Science and Technology Manager, Dow Corning Solar Solutions [slides]A4 - PV Economics, Finance & PolicyChristopher O’Brien, Head of Market Development, North America, Oerlikon Solar (Chair) [slides]Steve Chadima, Vice President, External Affairs, Suntech America [slides]Adam Browning, Executive Director, Vote Solar Initiative [slides]Gianluca Signorelli, Director, MMA Renewable Ventures [slides]A5 - PV Markets & SystemsTravis Bradford, President, Prometheus Institute (Chair) [slides]Paul McMillan, Principal, Utility Group, SunPower [slides]Thomas Sauer, CEO, EXXERGYBryan Ashley, Vice President of Marketing and Sales, Suniva [slides]David Arfin, Vice President, Customer Finance, Solar City [slides]Richard Raeke, Director of Project Finance, Borrego Solar [slides]A6 - CSP Technology & CostScott Frier, Chief Operating Officer, Abengoa Solar (Chair) [slides]Charlie Ricker, Senior Vice President, Marketing & Business Development, BrightSource Energy [slides]Avi Brenmiller, President, SolelRainer Aringhoff, President, Solar Millenium LLC [slides]Arnold Leitner, CEO and President, SkyFuel [slides]A7 - CSP ProjectsRob Church, Vice President, Industry Research and Analysis, American Council On Renewable Energy (ACORE) (Chair)Craig Tyner, Senior Vice President, Engineering, eSolar [slides]Erik Ellis, Vice President for Projects, Ausra [slides]Scott Frier, Chief Operating Officer, US Operations, Abengoa Solar [slides]Sean Gallagher, Vice President, Market Strategy & Regulatory Affairs, Striling Energy Systems [slides]F5 - Feed-In TariffsLois Barber, Executive Director, EarthAction, Co-Chair, Alliance for Renewable Energy (Chair)R. James Woolsey, Venture Partner, Vantage PointWilson Rickerson, Principal, Rickerson Energy Strategies [slides]John Burges, Managing Director, Knight Capital Markets [slides]Murray Cameron, Chief Operating Officer, Phoenix Solar [slides]Cheri Olf, Director of Education and International Workforce, American Council On Renewable Energy (ACORE)Steve Lapp, Engineer, Ontario Green Energy Act Alliance [slides]American Council On Renewable EnergyExecutive Summary Report 57

Utilities and Electricity TransmissionOverviewChanges in energy policy at every level –federal,state and local – have changed the face ofutilities across the nation. With a majority ofstates already establishing a renewable portfoliostandard (RPS) and the possibility of a federalRPS lurking in the future, the industry has begunto ramp up investment in renewable energy andsupporting technology. Leaders from across theelectric utility industry convened to discussrecent trends, technological developments, andmajor issues facing the industry.ConsensusA common theme that emerged among thespeakers was how utilities can meet the energychallenges of the 21 st century. Solutionsincluded in the discussions were: addressingenergy reliability and security; updating archaichardware and energy storage technology;investing in power generation and gridinfrastructure, and constructing energy policy tostimulate renewables. In the end, the answerwas that no single approach or technologicaladvancement alone can solve the challenges.Rather, the speakers concluded, it will take acombined effort of federal and state policybacked with support from a responsiveconsumer base.Infrastructure and TechnologicalDevelopmentThe United States needs a reliable power systemthat provides electricity 24 hours a day, 365days a year.The United States must not rely on 20 thcentury infrastructure to meet 21 st centuryenergy demands. The grid is operating veryclose to capacity and is dangerously vulnerableto physical and cyber attack. It is designed tolink specific generators with specific distributors,with no larger national vision. Over the next 20years, investments must be made to replace andmodernize electricity production, transmissionand distribution infrastructure.Inadequate transmission investment is theprimary obstacle to delivery of renewable energyto customers.As it is, the grid is ill-equipped to handle a large percentageof renewable power. Transmission developmentneeds to remain ahead of the renewable supply in order topromote new entry in resource-rich areas. To overcomethese obstacles we need a well functioning regionalplanning process, clear cost allocation and recoverymechanisms and adequate incentives for new transmission.There is a need for transmission policies to movelarge scale renewable resources to market.Competitive regional electricity marketshave a proven track record of improvingoperating efficiency, which allows us to domore with less.– William Massey, Partner, Covington & Burling, Counsel toCOMPETE CoalitionAmerican Council On Renewable EnergyExecutive Summary Report 58

Currently, planning is geographically fragmented andlocally focused. Siting multi-state transmission facilities isa long and contentious process involving numerous statesand local agencies each with the power to block an entireproject. Further, cost allocation of transmission investmentsmakes it difficult to finance a coherent interstatetransmission network for renewables.The answer is a national clean energy smart grid designedto build new interstate transmission capacity to bringrenewable energy from remote areas to population centersthat demand it. Smart grid technologies will managepower flows, improve reliability, facilitate end-use efficiency,and assist with the integration of clean distributedresources.The future of the industry relies on theconvergence of distributed renewable energyresources and a smart grid.A national clean energy smart grid will expand renewableelectricity, enhance reliability of the electricity system andstrengthen our economy by creating jobs and opportunitiesfor business. This upgraded transmission grid willallow utility companies and consumers to monitor andadjust their electricity use, while providing a pricingsystem to integrate new renewable energy sources andenergy storage devices.Distributed energy will provide greater stability to theelectricity grid by helping meet baseload power, peakingpower, backup power, remote power, power quality, as wellas cooling and heating needs. It will also allow customersto feed any excess power they produce back to the grid forother consumers to use.Energy storage technologies will be one of themost transformative technologies for theelectricity industry.The grid needs a consistent, stable supply of energy thatcan be adjusted during times of peak demand. Newenergy storage options can help provide such a supply andare essential for stabilizing the grid, ensuring a continuityof supply, increasing energy autonomy, mediating againstintermittent power production and expanding renewableenergy sources.Grid improvements could help move renewableenergy to the Southeast—the fastest growingregion in the nation.The Southeast will have a significant need for new generationin the future due to rapid population growth. This willbe a great opportunity for renewable energy growth.However, because there is a limited amount of renewableresources actually located in the region, the success ofrenewable energy development in the Southeast dependson grid improvements and the increased capacity to movethe renewable energy resources.With competitive pricing for baseloadrenewables utilities will have to considerthese generation sources to meet theirsupply needs.– D’Juan Hernandez, President & CEO, Sun Energy GroupThere are overlooked benefits of placingdistributed energy projects on industrial orbrownfield real estate.Currently, the trend is to place green projects on greenland, with the assumption that agricultural land is aneasier option, though far from the grid. But, the land isnot properly zoned, is environmentally sensitive andextensive environmental reviews are required.Further, building new transmission lines from the middleof the country to cities takes roughly 10 years, whereasdistributed generation on previously zoned industrial landtakes between 1 to 9 years. Using land use law to ouradvantage will get projects built on sites where municipalitiescannot say no. Industrial zoned lands are zoned toinclude electric generation, have minimal environmentalreview and are often in non-environment sensitive areas.One example is the Buffalo Steel Wind Project inLackawanna, New York – just outside of a city wherepower is needed and close to the grid.Energy Security and US Competitivenessin the Global MarketInvestments in renewable energy can decreaseAmerica’s oil dependence and improve nationalsecurity.The US imports roughly 13 barrels of oil eachday – over 60% of its total daily consumption.This dependence on imported oil ties theUS economy to unstable and often undemocraticnations. We can decrease thisdependence on foreign sources of energy byAmerican Council On Renewable EnergyExecutive Summary Report 59

developing domestically produced low-carbonand renewable sources of energy.The US must lead by example.Changes and improvements in renewable energy andenergy efficiency policy need to happen first domesticallybefore the US can export their models to other countries.The US must maintain its competitiveness in theglobal economy.To maintain its competitiveness in the global economy theUS must act now. Annual global investments in renewableenergy are over $35 billion and are driving down costs andspurring rapid advances in technology. The rapid growthrates are also creating new economic opportunities forpeople around the world.The US needs a strong commitment to renewable energyand must make innovation, efficiency and cost containmentan imperative for the electricity sector.Expanding the use of renewable energy will havea positive impact on employment.Studies show investment in renewable energy will have apositive impact on the US economy by creating new jobsand stabilizing energy prices. A 20% national RPS in 2020would produce more than 200,000 additional jobs thanthe case where 20% of generation is produced by coal andnatural gas.Through energy efficiency over 800,000 jobs will becreated in 2020, under the assumption of a 1% annualdemand reduction achieved through energy efficiencymeasures. Among the common RPS technologies, solarPV creates the most jobs per average megawatts - a“business as usual” RPS with 50% biomass produces170,000 in 2020, while an RPS with a 50% solar contributionproduces 570,000 jobs.Carbon capture and storage and nuclear power have thefollowing sensitivities in 2020: 25% deployment of CCSproduces 170,000 jobs and an increase in nuclear powerfrom 19% to 35% produces 156,000 jobs. All statisticsprovided were from the Renewable and Appropriate EnergyLaboratory.Policy IssuesAmerica needs a world-class energy policybased on a sustained and consistent frameworkat the local, state and national levels.In the past, US energy policies have been aconstantly changing patchwork, deterringinvestors and stifling innovation. America needsstrong and enduring energy policies that createmarkets for renewable energy technologies,encourage the development of newmanufacturing industries, and provideincentives for investors.States with renewable portfolio standardsillustrate the potential for renewable growth.Texas is home to country’s largest collection of windturbines. California gets over 12% of its electricity needsfrom non-hydro renewable sources such as wind and solar.Boulder, Colorado is a comprehensive demonstration ofan intelligent grid community. With federal leadership,rapid progress is possible.Federal regulations should support current Stateand local regulations.While strong federal leadership is needed, federal policyshould not undo progress made by state and local governments.Federal policy should allow states and localgovernments to establish targets beyond federal requirements.A robust partnership between government andthe private sector is needed to provide ajumpstart to new energy industries whileminimizing the cost to American taxpayers.Government financing should provide long-term, lowinterest loans to address upfront costs and reduce risksinvolved in renewable energy projects. Incentives shouldperformance-based and should evolve predictably toensure investment and innovation. These financialinstruments and incentives will provide time for investorsto adjust to the new investment requirements of renewableenergy.American Council On Renewable EnergyExecutive Summary Report 60

Federal policy should allow for a competitiveelectricity market while still promoting increaseduse of renewable energy.Competitive electricity markets drive renewable energy,demand response and innovation. In regions with organizedcompetitive electricity markets and transparentmarket prices, customer choice and renewable standardsare providing a favorable environment for renewables.Further, additional safeguards such as price caps, creditworthinessrequirements and real-time monitoring byindependent market monitors protect customers.Green Power MarketsSpanning the gap between consumers’expressed interest in receiving environmentallysound energy and their willingness to make thecorrect decision at the point of purchase is achallenge.While there is high consumer interest insustainability, participation rates are low.How do we increase understanding andparticipation? Programs offers have to be simpleand provide an emotional connection soconsumers feel they are part of a communityworking together to make a difference.Solutions must also be meaningful and effectivefor generations. Lastly, offers must be viewedas trustworthy, transparent, and reliable.Voluntary purchases play a major role in drivingthe US renewable energy market.The future of the industry relies on gettingcustomers into the market with distributedrenewable energy resources, smart gridenabled technology, energy efficiency andcontrollable demand.– Joseph Kerecman, Senior Vice President Viridity EnergyIn 2007 renewable energy sales were 15.7 million MWh,up 60% from 2006. Voluntary purchasers of renewablepower pay a premium price for electricity, but in someinstances customers are now paying less than nonsubscribersdue to rising natural gas prices. Successfulprograms offer clear choices, find support from localleaders and utilize media sources to convey programbenefits. Programs that have not proven successful tendto have confusing enrollment offers and spend too muchmoney on marketing and administrative costs.ConclusionsRecognizing the urgency of the 21 st centuryenergy challenges, the utility industry is workingto transform the way we generate, supply,transmit, store and use energy. A strong andenduring energy policy that reduces USindependence on foreign oil, invests in newtechnologies, and results in the diversifying ofenergy sources is necessary if the utility sectoris to succeed in the transition.Session ReferencesA1 - Utilities: Strategic Issues in Renewable EnergyJohn Geesman, Former Commissioner, California Energy Commission (Chair)John Bohn, Commissioner, California Public Utilities CommissionWilliam Massey, Counsel to COMPETE Coalition (and former FERC Commissioner), Partner, Covington & Burling [slides]Daniel Kammen, Class of 1935 Distinguished Professor of Energy, Energy and Resources Group, Founding Director,Renewable and Appropriate Energy Laboratory, University of California [slides]American Council On Renewable EnergyExecutive Summary Report 61

B2 - Utilities: TransmissionJoseph Rossignoli, Director, Regulatory Policy, National Grid (Chair) [slides]Clint Wilder, Contributing Editor, Clean Edge [slides]Henry Durrwachter, Director, ERCOT Market Services, Luminant Energy Company [slides]Reid Detchon, Executive Director, Energy Future Coalition [slides]C3 - Utilities: Planning, Procurement & ContractsRoger Feldman, Partner, Andrews Kurth LLP (Chair)Ervan Hancock, Manager, Renewable & Green Strategies, Georgia Power [slides]Hal LaFlash, Director, Emerging Clean Technology Policy, Pacific Gas & Electric Company [slides]D’Juan Hernandez, President & CEO, Sun Energy Group [slides]D4 - Utilities: Energy StorageDan Rastler, Technical Leader, Energy Storage and Distributed Generation Program, EPRI (Chair) [slides]Bill Leighty, Director, The Leighty Foundation [slides]Bill Capp, President & CEO, Beacon Power [slides]Paul Kuhlman, Advisor, Ice Energy Inc. [slides]William Hassenzahl, Former Chairman of the Board, Energy Storage Association [slides]E5 - Utilities: Smart Grid & Distributed GenerationReid Detchon, Executive Director, Energy Future Coalition (Chair)Lisa Frantzis, Managing Director, Navigant Consulting [slides]Sandy Simon, Director for Utility Innovations, Xcel Energy [slides]Linda Shaw, President, Future Energy Development [slides]Timothy Roughan, Director of Distributed Resources, National Grid [slides]Joseph Kerecman, Senior Vice President for Market Development and Strategy, Viridity Energy [slides]F6 - Utilities: Green Power MarketsMel Jones, CEO, Sterling Planet (Chair) [slides]Arthur O’Donnell, Executive Director, Center for Resource Solutions [slides]Patrick Cloney, Executive Director, Massachusetts Clean Energy Center [slides]Nate Hanson, Vice President, NextEra Energy Resources [slides]American Council On Renewable EnergyExecutive Summary Report 62

Wind: Markets, Technologies, and PolicyOverviewWind energy currently makes up most of therenewable power capacity in the United States(excluding large hydroelectric projects), with over25 GW of wind power capacity as of 2008. Theamount of wind energy will continue to increasenationwide as engineering improvements drivedown the cost of turbines, making electricity fromwind cost-effective with traditional forms of powergeneration. The market for wind power is,however, still sensitive to policy and incentivechanges, so it is important to assess the factorsthat affect the wind energy industry. The windenergy sessions at RETECH covered issues relatedto wind turbine technology, the current status ofwind markets, and the related policy environment.ConsensusMost of the speakers envisioned a future in whichwind power will make up about 20% of thenation’s electricity by 2030. This future willnecessitate increases in turbine size,improvements in offshore wind technology, and avast expansion of the nation’s transmissionsystem. Cost will continue to decrease as themarket grows and technologies improve.Additionally, the market for small windapplications will grow, due to the advantagesassociated with distributed generation, and thebenefits of local ownership. However, most of thespeakers predicted a significant decrease in windturbine installations in 2009 (compared to 2008),but expect the market to rebound in 2010 as aresult of the stimulus package and othersupportive policies. The Investment Tax Credit forwind was predicted to be an important incentivefor developers, and the option for cash grants willenable more developers to reap the benefits ofthe tax credit.Wind TechnologyEngineering improvements will continue toincrease the efficiency of utility-scaleturbines, allowing turbines to produce moreenergy per hour.Turbine improvements include taller towers,larger rotors on smaller generators,improved grid support, and slower turninggenerators. Turbine size will continue toincrease to about 5 MW for land-based turbinesand up to 10 MW for offshore turbines.More wind projects will be located offshore inthe future.The market for offshore wind power will be driven bytechnology improvements that allow turbines to be locatedfarther from the shore in deeper water, as well as engineeringimprovements that create turbines with muchlarger capacity.Demand for small-scale wind applications willalso increase.Not only will utility-scale wind turbines continue to improveand become more efficient, but small-scale residentialand community based turbines will benefit from engineeringenhancements as well. Because small-wind applicationsdo not face many of the constraints of large-scalewind projects—notably transmission access—the marketfor these projects will continue to grow. Small windsystems may be grid-tied or off-grid, and can also be usedwith battery storage systems to open new markets andmake systems more useful. Additionally, small windsystems may be used jointly with solar PV systems.Small wind allows customers to put thepower where they want it.– Mike Hess, CEO, Mariah PowerDespite the positive outlook for the windindustry, barriers to wind energy deploymentremain.American Council On Renewable EnergyExecutive Summary Report 63

Barriers for the wind industry include lack of transmissioninfrastructure, constrained supply of copper and steel,policy inconsistency, high cost, and additional regulatorybarriers. Turbine technology will continue to improve onlywith a supportive policy environment and incentives forresearch and development.Small wind turbine applications face challengesas well.Many of the same obstacles to large-scale wind apply tosmall wind, including cost issues and resource variability.Federal PolicyThe Production Tax Credit (PTC) has helpedgenerate a strong wind industry in the USThe primary federal policy that hassupported the wind energy industryhistorically is the Production Tax Credit (PTC), a$.021/kWh credit for wind energy. With thePTC, the federal government engages in apublic-private partnership with wind farmdevelopers, paying up to 2/3 of the capital costof new wind projects.The tax system is an effective vehicle toraise money for public use but also toincent behavior and growth.– Matt Ferguson, Principal, Reznick GroupChanges in federal policy will help winddevelopers and provide flexibility.Under the American Recovery and Reinvestment Act(ARRA), the PTC was extended through 2012, and developersmay receive an Investment Tax Credit (ITC) instead,which gives developers an up-front credit for investmentinstead of a credit after the project is completed.Cash grants make the federal incentives evenmore accessible.Another important change in the law is that developersmay elect to receive a cash grant in lieu of the ITC. Thesechanges in policy affect the market by lowering costs fordevelopers—making wind energy cost-competitive withcoal—and increasing consumer demand for wind energy.FinanceThe wind market has been heavily reliant on taxequity financing, but this model experienced adownturn in late 2008.Although the number of wind installationswas greater in 2008 than in any other year,asset transactions decreased steadily from thebeginning of 2008 through the end of the yearas a result of the capital market crash.With a supportive policy environment, marketswill rebound.The ARRA, or stimulus bill, is expected to boost markets.Also, the DOE’s loan guarantee program will be especiallypopular, and although markets will continue to slow in2009, the market will pick up again in 2010.Wind markets are still heavily reliant on federaltax credits.In coming years, the wind industry must find ways to beless reliant on tax credits, since these are set to expire atthe end of 2012.Wind Resource and EconomicsKnowing the strength and quality of a windresource can affect the economics of windprojects.Strong, consistent resources create the idealconditions for wind energy projects, becausethey allow turbines to generate the most energyper hour.Wind resource patterns are not consistent,creating wind integration costs related tovariability and uncertainty of the resource.It is important for developers to have accurate forecasts ofwind resource patterns, since wind speeds can typicallychange from year to year. Power system operators wantreliability above all else. Demand management, storage,and plug-in hybrid vehicles can help reduce uncertaintyand help with wind integration.American Council On Renewable EnergyExecutive Summary Report 64

Regional FactorsBesides federal policy, state and local policiesaffect wind energy deployment.State renewable portfolio standards, taxincentives, and other state policies andregulations have a significant effect on windenergy installations on a state by state basis.There are no fundamental barriers toachieving 20-30% electricity from wind.– James Lyons, Chief Technology Officer, NovusEnergy PartnersOther regional factors affect wind energycapacity installed as well.These factors include the local wind resource, wholesalepower prices, access to a merchant market, access totransmission, siting issues, and eligibility to meet RPSdemand.ConclusionsSpeakers in the RETECH wind energy sessionsoffered a sober but optimistic view of the USwind market for 2009. Though they expect windenergy installations to be modest in 2009, themarket is expected to rebound in 2010. Additionally,as wind turbine engineering improvementsdrive down the cost of turbine components,demand for wind energy will increase. Aslong as the barriers to large-scale wind deploymentare removed—including an expansion ofthe transmission grid and the enactment ofsupportive policies—the market for wind energyin America will continue to grow, helping toensure a clean energy future for the country.Session ReferencesB3 - Wind TechnologyRobert Thresher, Research Fellow, National Renewable Energy Lab (NREL) (Chair) [slides]Steven Saylors, Chief Electrical Engineer, Vestas-American Wind Technology, Inc. [slides]Mike Hess, CEO, Mariah Power [slides]James P. Lyons, Chief Technology Officer, Novus Energy Partners [slides]Dan Juhl, CEO and Chairman, Juhl Wind, Inc. [slides]B4 - Wind Economics, Finance & PolicyMatt Ferguson, Lead/Principal of National Renewable Energy Practice, Reznick Group (Chair) [slides]Richard Krauze, Director of North American Business Development, 3TIER [slides]John Eber, Managing Director-Energy Investments, JP MorganEd Feo, Partner, Milbank [slides]B5 - Wind Markets & ProjectsRichard Krauze, Director of Business Development for North America, 3TIER (Chair)David Hastings, Vice President Development, Western Region, Acciona Energy North American Corp. [slides]Barrett Stambler, Vice President, Renewable Origination, Iberdrola Renewables, Inc. [slides]Mark Ahlstrom, CEO, WindLogics [slides]Anntonette Alberti, Vice President, Tetra Tech [slides]American Council On Renewable EnergyExecutive Summary Report 65

AcknowledgementsThis publication was produced by the followingACORE staff members, to whom we owe our thanks:Andrew EilbertTurner HoustonLesley HunterSamantha JacobyTaylor MarshallErin MooreLouis PappasDesign and Layout Editor, Content WriterEditor-in-ChiefDesign Advisor, Content WriterLead Editor and Writer, Content SpecialistContent WriterContent WriterHead Writer, EditorIf you have any questions about this report or would like torequest further information, then please contact TurnerHouston at houston@acore.org or (202) 393-0001American Council On Renewable EnergyExecutive Summary Report 78